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Under variable costing variable selling and administrative costs are included in product costs?
Wiki User
∙ 10y ago
No. They are not.they are part of period costs.
Wiki User
∙ 10y ago
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Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
What costing method considers variable factory overhead a product cost?
variable costing
How do variable costing and absorption costing differ?
marginal costing is also known as contribution costing. its a costing method that's includes only a variable cost of a product no attempt is made to allocate or appropriate fixed costs to cost centers. the setting of prices is basically based on the variable costs of making a product. if the prices are set above this unit cost then each item sold will make a condition to fixed costs. on the other hand absorption costing or full costing is an approach to the costing of products that allocated all costs of production to cost centers. The aim is to ensure that all business costs are covered.
What cost is charged to the product under variable costing?
the Utah Jazz can sodomize itself
Why marginal costing method not Suitable to be used by manufacturer for external financial reporting and tax purpose?
I think..... In marginal costing method only variable cost is considered as product cost and fixed cost is not considered as product cost. But in reality product cost include fixed and variable, thus both variable and fixed costs should be considered while allocating cost. Marginal costing is used for inside reporting and absorption costing is used for outsider to clarify the real cost of product........ Am i right? Please confirm it
Is the administrative salaries are the variable cost?
Administrative salaries has no relationship with production of product so it almost always remain same so it is a fixed cost not variable cost
Assuming that direct labor is a variable cost product costs under variable costing include only?
B. Direct materials, direct labor, and variable manufacturing overhead.
What are the pros and cons of using a variable product costing reporting system with a JIT inventory system?
Please visit these Web sites for detailed information regarding variable product costing and JIT inventory systems: * http://www.smccd.net/accounts/nurre/online/chtr7.html * http://www.maaw.info/5partsofcostsystem.htm
What is marginal costing and direct costing?
Marginal costing is a technique of costing where the variable expenses are charged to a product. It ignores the fixed expenses incurred by the business in fixing the price of a product on the assumption that the fixed expenses are not incurred in producing an additional unit.They are treated as period costs& charged directly to P& L A/C.Marginal cost is the cost of producing an additional unit of product.It takes the direct expenses & the variable portion of the overhead expenditure. But Direct costing takes into account only the direct expenses like direct mterials, direct labour & direct expenditure for finding out the cost of a product.
Why do you need product costing system?
needs of product costing system
Is telephone cost a variable cost?
No, telephone expense is an administration expense and administration expenses are not included in product cost so not a variable cost in the sence of product cost.
