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 ...

Inventory cost often is the primary concern when dealing with inventories. Companies not only want efficient inventory cost management, but also need appropriate financial reporting on inventory cost.

Companies must choose between absorption costing and variable costing in their accounting systems, and there are advantages and disadvantages to either choice. Absorption costing, also known as full ...

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Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...