Variable (direct) costing treats only variable costs as product costs. Fixed overhead costs are expensed.
Marginal costing considers only the cost of producing one more unit. Since fixed costs are fixed, they are not considered in marginal costing.
Full absorption costing includes the fixed manufacturing overheads in the calculation of the per unit cost.
Direct (variable) costing treats only variable costs as product costs. Fixed overhead costs are expensed.
|
