Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 9 - Inventory Costing and Capacity Analysis - Assignment Material - Questions - Page 358: 9-4

Answer

The main issue between variable costing and absorption costing is when to consider fixed manufacturing costs as expenses. Variable costing does it when the costs are incurred, while absorption costing does it when the finished products are sold.

Work Step by Step

The main issue between variable costing and absorption costing is when to consider fixed manufacturing costs as expenses. Variable costing does it when the costs are incurred, while absorption costing does it when the finished products are sold.
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