Absorption Costing and GAAP. Variable Costing a.k.a. direct costing Fixed Mfg O/H is a Period Cost Focus is on Contri-bution Margin This isn’t G.A.A.P. Absorption Costing a.k.a. full costing Fixed Mfg O/H is an Inventoriable Cost Focus is on Gross Margin This is G.A.A.P.

Absorption Costing and GAAP

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