Variable/Direct/Marginal and Absorption CostingDiscussion Questions and Answers: Questions: Differentiate between direct costs and direct costing. See answer. Distinguish between period costs and product costs. See answer. Why does the direct costing or variable costing theorist exclude fixed manufacturing costs from inventories? See answer In
Direct costs can be defined as costs which are accurately traced to a cost object with little effort. Cost object may be a product, a department or a project etc.
Absorption costing vs Variable costing: Learning Objectives: Define and explain variable and absorption costing. Explain the difference between variable and absorption costing and calculate unit product cost under each method. Absorption Costing or Full Costing System: Definition and explanation: Absorption costing is a costing
Direct Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Direct costing is also called marginal costing and variable costing.