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DIRECT COSTING

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Operation

Evaluate

Inventory

Variable Costs

assigned

Products

Sales cost

Variable manufacturing cost

enough information

Company address

Process

planningstrategic

Production

Operation

Fixed costs

Constants

the capacity

Produce or sell an item

Absorbent costing

Costs

Include

Product

Fixed

Variables

Acknowledged

Method

Valuation

inventory

Purposes

External reports

Apply

Costing

valuation

Production

Distribution

fixed costs

Product

Variable costs

Manufacturing costs

Advantage

Fluctuations

Unit cost

Obtaining

Break-even point

Comparison

units

values

Various periods

have

Better control

sources

utilities

Disadvantages

Incomplete costing

Statement of income

loss caused

Ability
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Valuation

inventories

lower

Tradicional información

Decisions

disorients

unit costs


Minors

principle of
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Accounting period

does not reflect the
fixed costs

production level

determined period

generate

generate

Advantage

Valuación

inventories

Production

process and finished

Higher

direct costing

Universal

accepted system

Profesión contable

physical

accounting principle

Accounting period

reflects the
fixed costs

Level of
production
finished

Certain

Fixation

Prices

Determine

Total cost

Disadvantages

balance point

complex

accounting records

both costs

Establishment

optimal combination

Volume

Cost

Utility

Supply

Budget
trustworthy

costs

Fixed

Variables

Direction of
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Control

Sources

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