| Term | Definition |
|---|
| Absorption Costing | A costing method that includes all manufacturing costs--direct materials, direct labor, and both variable and fixed manufacturing overhead--in unit production costs. |
| Fixed manufacturing overhead costs deferred in inventory | The portion of the fixed manufacturing overhead cost of a period that goes into ending inventory under the absorption costing method. |
| Fixed manufacturing overhead xost released from inventory | The fixed manufacturing overhead cost of a prior period that becomes an expense of the xurrent period under the absorption costing method. |
| Variable costing | A costing method that includes only variable manufactuing costs--direct materials, direct labor, and variable manufacturing overhead--in unit product costs. |
Combine with other sets
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