Variable Costingâ€"A joyride for Management
JUST ONE THING
FMOH
|Absorption be (full follow) |Variable costing |
| Sales | reaping cost (COGS) | Sales |Product cost |
| |DM | |DM |
|- COGS |DL |-Variable expenses |DL |
|Gross value |VMOH |Contribution Margin |VMOH |
| |FMOH (product cost) | |period cost-- VS&A |
| | | | |
|- Operating expenses | occlusive costs (op. exp.
) |-Fixed expenses | |
|Net income |VS&A |Net income |FMOH (period cost) |
| |FS&A | |FS&A |
Why two different methods?
UNIT PRODUCT personify COMPUTATIONS (Per Unit Product Inventory Costs)
|Absorption costing Product Cost |Variable costing Product Cost |
|DM |DM...If you want to get a full essay, order it on our website: Ordercustompaper.com
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