Absorption (Full) Costing and Variable (Marginal, Direct) Costing In Urdu/Hindi

Описание: Absorption (Full) costing and Variable (Marginal, Direct) Costing In Urdu/Hindi
In this video, we will learn about Absorption Costing and Variable Costing in Urdu and Hindi. First, we will discuss the absorption unit product cost and Variable Product Cost. Absorption Costing is also known as Full costing. Variable Costing is also known as marginal and Direct cost. The formula of both accounting approaches is almost the same only difference between the treatment of fixed manufacturing overhead cost. Inventoriable Cost is the cost of the product cost.
Absorption Costing Vs Variable Costing
Absorption Costing Formula
Under absorption costing, we change fixed manufacturing overhead per unit under absorption cost. It will become a product cost under absorption costing.
Variable Costing Formula
But in Variable Costing, the fixed manufacturing overhead become part of the period cost. It is the main difference, in this method.
Variable Costing Income Statements and Absorption Costing Income Statements are also different as well. Especially the format of Income Statements is changed each other. This point is very well explained in this video as well.
Reconciliation Absorption Costing and Variable Costing
We can reconcile Absorption Costing and Variable Costing net incomes. It's a very simple process. It is explained at the end of this video.
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