Diego Company
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Diego Company
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Introduction :
Variable costing is the method in which all variable costs will be allocated to the units of the products while calculating the contribution and fixed cost will be treated as period cost.
Whereas in Absorption costing method all fixed as well as manufacturing overhead will be allocated to the units of the products and fixed as well as variable selling and admin. overhead will be treated as period cost.
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