Reviewed by Robert C. KellyFact checked by Suzanne KvilhaugReviewed by Robert C. KellyFact checked by Suzanne Kvilhaug Absorption costing and variable costing are methods used in accounting to ...

ridvan_celik / Getty Images Companies must choose between absorption costing and variable costing in their accounting systems, and there are advantages and disadvantages to either choice.

also known as full costing, is an accounting method that assigns all direct and indirect costs to a product. This includes direct materials, direct labor, variable manufacturing overhead ...