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3 years ago

LO 6.5Product costs under variable costing are typically:

Business

1 answer:

tatyana61 [14]3 years ago

7 0

Answer: lower than under absorption costing

Explanation:Product costs under variable costing are usually lower due to the composition of the cost calculation.

Under variable costing, the cost elements are direct material, direct labour and variable overheads while under the absorption costing method the cost calculation will include direct materials, direct labour, variable overheads and fixed overheads.

simply put is to say that variable costing calculation is lower than absorption costing calculation because absorption costing calculation includes fixed overheads while variable costing calculation does not.

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3 years ago

Assume Dell's yearly inventory cost is 30 percent to account for the cost of capital for financing the inventory, the warehouse

JulijaS [17]

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3 years ago

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monitta

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11 months ago

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Explanation: