VARIABLE COST (explanation)
UNIT COST BEHAVIOR OF VARIABLE COST
TOTAL COST UNIT COST
Varies in direct proportion to changes in activity Constant throughout the relevant range
Cost and Expenses Variable Costing
Direct Materials Product cost
Direct Labor Product cost
Variable Overhead Product cost
Fixed Overhead Period cost
Variable selling general and administrative expenses Period cost
Fixed selling general and administrative expenses Period Cost
Net income in variable costing computation
Sales xx
COGS(Variable manufacturing cost) (xx)
Manufacturing Margin xx
Variable selling general and administrative expenses (xx)
Contribution Margin xx
Fixed Cost (xx)
Net income xx
