The only difference between variable and absorption costing is the treatment of fixed overhead costs.

Name: The only difference between variable and absorption costing is the treatment of fixed overhead costs.
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Question

Quizplus · Accepted Answer

Variable costing only considers variable manufacturing costs (direct materials, direct labor, and variable overhead) as product costs, whereas absorption costing includes all manufacturing costs (both variable and fixed overhead) as product costs.

The Only Difference Between Variable and Absorption Costing Is the Treatment