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.