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 ...

Similar to financial accounting, managerial accounting accumulates and analyzes data to make logical economical decisions. "Variable costing" is an accounting decision-making tool that managers ...

Discover how absorption costing is used in GAAP for external reporting. Learn its components and why it's essential for ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...

Analyzing costs can help companies make strategic, financially sound decisions. Activity-based costing and absorption costing are two popular accounting methods that companies employ when evaluating ...