512,174 views
31 votes
31 votes
Discuss the difference between the income statement of Variable and absorption costing.

User Lex B
by
2.8k points

1 Answer

12 votes
12 votes
Absorption costing includes all of the direct costs associated with manufacturing a product, while variable costing can exclude some direct fixed costs. ... Variable costing includes all of the variable direct costs in COGS but excludes direct, fixed overhead costs.
User Argbo
by
2.1k points