Question: The variable cost approach is a method where product costing is based on a calculation of the Cost of Goods Sold (COGS) and a calculation

The variable cost approach is a method where product costing is based on a calculation of the Cost of Goods Sold (COGS) and a calculation of Selling, General and Administrative (SG&A) expenses. These two broad categories of costs, COGS and SG&A, are used to determine the underlying product and service cost.*

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