how
are absorption costing and variable costing the same?How are they
different?
70.2K
Verified Solution
Link Copied!
Question
Accounting
howare absorption costing and variable costing the same?How are theydifferent?
Answer & Explanation
Solved by verified expert
3.9 Ratings (478 Votes)
1The basic difference between absorption and variable costing relates to the heading of fixed manufacturing overhead Under absorption costing fixed manufacturing overhead is treated as a product cost and hence is an asset until products are sold Under variable costing fixed manufacturing overhead is treated as a period cost and is deducted in full from the current periods revenues 2Selling and administrative expenses treated as period costs under variable costing the
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
