Question: What is the difference between variable and absorption costing? How does operating income differ under variable and absorption costing? Why might managers build up finished-goods

  1. What is the difference between variable and absorption costing?
  2. How does operating income differ under variable and absorption costing?
  3. Why might managers build up finished-goods inventory if the company uses absorption costing?
  4. How does throughput costing differ from variable costing and from absorption costing?

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Difference between Variable and Absorption Costing 1 Treatment of Fixed Manufacturing Overhead In variable costing fixed manufacturing overhead costs are treated as period expenses and are not allocat... View full answer

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