Explain the Differences Between Variable (Marginal) Costing and Absorption Costing

question 7

Essay

Explain the differences between variable (marginal) costing and absorption costing.

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Definitions:

Business

An enterprise or corporation participating in business, industry, or professional pursuits.

Cash Balance

The amount of cash that a company or individual has available at any given time.

Advertising Expense

Advertising expense is the cost associated with promoting an organization’s products or services through various media channels.

Shareholder Dividends

A distribution of earnings to shareholders by a corporation, usually in the form of profit sharing.