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.
A costing method that includes only variable manufactuing costs--direct materials, direct labor, and variable manufacturing overhead--in unit product costs.
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