Period costs according to the variable costing method are also charged to production. Advantages of Full Costing and Variable Costing The following are the advantages of full costing and variable costing that you can consider to choose which method is right for your company as follows Advantages of Full Costing The advantages you get if you use the full costing method are as follows.
Displays the amount of overhead costs very comprehensively because South Sudan Email List it contains two types of costs namely fixed and variable overhead. This method is able to delay overhead costs when the product has not yet been sold on the market. Overhead costs for unsold goods can be transferred to reduce or increase the cost price. Advantages of the Variable Costing.
Method If you use the variable costing method there are several advantages you will get as follows Suitable for those of you who only plan to make a profit in a short period of time. Usually used to control costs because variable costing divides fixed costs into two groups namely discretionary fixed costs and committed fixed costs.