Variable costing can provide a clearer picture of per-unit cost and inventory value because it excludes the fixed overhead cost. Direct costs are usually associated with COGS which affects a ...

Absorption costing includes a company’s fixed costs of operation, such as salaries, facility rental, and utility bills. Having a more complete picture of cost per unit for a product line can ...

Commodore had recently acquired MOS Technology's semiconductor fabrication plants, significantly reducing production costs, with each Commodore 64 unit costing only about $135 to manufacture.