Variable costing includes the costs directly incurred in production and none of the fixed costs. Absorption costing is required for reporting purposes under the Financial Accounting Standards ...

Variable costing, on the other hand, only includes direct costs in the cost of a product. Indirect costs, or overhead expenses, are not included in the cost of the product under variable costing.

Many companies are operating under the false assumption that diversifying their product lines will automatically lead to cost ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...