Variable Costing & Segment Reporting

Variable Costing & Segment Reporting

1. Variable Costing

   • Cost behavior
     • direct materials
     • direct labor
     • variable man. overhead

2. Absorption Costing

   • Manufacturing or nonmanufacturing
     • direct materials
     • direct labor
     • variable man. overhead
     • fixed man. overhead

3. Traceable fixed costs

   • Segmented

4. Common fixed costs

   • Supports opperations