The difference between absorption and variable costing is the timing difference in the expensing of fixed overhead costs.

Question

Quizplus · Accepted Answer

Absorption costing includes fixed overhead costs in the cost of goods sold, while variable costing only includes variable costs in the cost of goods sold. This results in a timing difference in the expensing of fixed overhead costs between the two costing methods.

The Difference Between Absorption and Variable Costing Is the Timing