Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

The difference between absorption and variable costing methods is in the treatment of?

A- direct labor B- fixed manufacture cost C- direct material D- selling and administration cost

user-image
Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/12
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

The only difference between absorption costing and variable costing is the treatment of fixed manufacturing overhead (FMOH). Under absorption costing, FMOH is allocated to units produced, so that there is a little bit of FMOH included in the cost of every unit of inventory. Under variable costing, FMOH is treated as a period expense, appearing on the income statement as a lump-sum in the period incurred.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

B->>>>>>>>> fixed manufacture cost

More Questions Like This