Variable costs of value chain areas other than manufacturing are typically written off as period costs regardless of the costing method used.

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Variable costs of value chain areas such as marketing, distribution, and customer service are usually classified as period costs and are expensed in the period in which they are incurred, regardless of the costing method used (such as absorption costing or variable costing). This is because these costs are not directly linked to the production of a specific product or batch of products, but rather to the overall operation of the company.

Variable Costs of Value Chain Areas Other Than Manufacturing Are