ch9 - Chapter9:InventoryCosting

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Chapter 9: Inventory Costing Inventoriable   costs  are all the manufacturing costs of a product that are considered as  assets in the balance sheet when they are incurred.  Inventoriable   costs  become costs of goods sold when the product is sold.  Variable   costing  and  absorption   costing   1. Variable   costing  includes all variable manufacturing costs as inventoriable  costs; all fixed manufacturing costs are excluded from inventoriable costs and are  treated as costs of the period in which they are incurred.  2. Absorption   costing  includes all variable manufacturing costs and all fixed  manufacturing costs as inventoriable costs.  * Under both methods, the respective amount of inventoriable costs becomes costs of  goods sold when the products are sold. Variable costing and absorption costing differ in how they account for fixed  manufacturing costs. 
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This note was uploaded on 04/06/2012 for the course ACCT 272 taught by Professor Mensah during the Spring '08 term at Rutgers.

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ch9 - Chapter9:InventoryCosting

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