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 ...

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 ...

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.

It's GAAP compliant and accurate, but it may be misleading J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of ...