Variable costing

Categories:

Accounting

| Contributor:

Hoang Truong

Tags:

Cost accounting

Definition

Variable costing is a concept used in managerial and cost accounting in which the inventorial cost only incur variable manufacturing cost and exclude fixed manufacturing cost.

Example

A car production car company will incur:

‍
- All manufacturing variables cost and other variable cost before the contribution margin

‍
- All fixed cost is incurred after contribution margin

Video

Visualization(click to expand)

Source and advanced materials

https://corporatefinanceinstitute.com/resources/knowledge/accounting/variable-costing/

Sign up and learn new business concept every week!!!

Weekly new ideas, terms and practice so you will not be missed out on the upcoming new innovation

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

Edlintics is trying give you the best content!! Send us what you want to learn and we will explain for FREE!!

Tell us what you want to simplify!!!

Variable costing

Definition

Example

Source and advanced materials

If you think you can simplify the concept further, tell us!!

Sign up and learn new business concept every week!!!

Company

Contact