A manufacturer has two general ways to account for fixed manufacturing costs: variable costing and absorption costing. Under variable costing, you do not include fixed manufacturing costs in your ...

Companies must choose between absorption costing and variable costing in their accounting systems, and there are advantages and disadvantages to either choice. Absorption costing, also known as full ...

There are a variety of ways to think about business costs. Marginal costing income statements are more useful for analyzing inventory and production costs, while absorption costing is required under ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, ...