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Variable vs Absorption Costing Explained by adulusman501 is a document available to read on EtoBox.

Variable costing and absorption costing are two methods of product costing. Absorption costing treats all manufacturing costs, including fixed costs, as inventoriable costs and is required for external reporting. Variable costing only includes variable manufacturing costs as inventoriable costs and treats fixed costs as a period expense. Under variable costing, net income is higher when production is lower than sales and inventory values are lower.

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adulusman501

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EN