{"id":9070,"date":"2025-01-14T02:00:01","date_gmt":"2025-01-14T02:00:01","guid":{"rendered":"https:\/\/www.hashmicro.com\/blog\/?p=9070"},"modified":"2025-03-03T03:09:46","modified_gmt":"2025-03-03T03:09:46","slug":"variable-costing","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/blog\/variable-costing\/","title":{"rendered":"Advantages, Disadvantages, and Examples of Variable Costing"},"content":{"rendered":"\r\n<p><strong>Variable costing<\/strong> is a method that only considers variable costs in calculating production expenses. This method works by focusing on costs that change with production levels, such as raw materials and direct labor.<\/p>\r\n<p>Have you ever wondered how businesses keep costs manageable while maximizing profits? Variable costing helps businesses make smarter decisions by highlighting production cost patterns.<\/p>\r\n<p>Businesses can\u00a0<span style=\"margin: 0px; padding: 0px;\">simplify this process by using an integrated system like\u00a0<strong>HashMicro&#8217;s <a href=\"https:\/\/www.hashmicro.com\/accounting\">Accounting Software<\/a><\/strong><\/span>. With real-time insights and automated calculations, it effortlessly ensures precise cost management.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n<p>Furthermore, this article will explore the definition of variable costing and its strengths and limitations. You&#8217;ll also find practical examples to help you understand its application in business.<\/p>\r\n<table style=\"border-collapse: collapse; background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\r\n<tbody>\r\n<tr>\r\n<td style=\"padding: 15px; border: none;\">\r\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\r\n<ul>\r\n<li>\r\n<p>Full costing and variable costing are fundamental methods used by businesses to determine production costs. Both methods play crucial roles in the costing process, with full costing focusing on total costs and variable costing concentrating on variable costs.<\/p>\r\n<\/li>\r\n<li>\r\n<p>Variable costing, also known as marginal costing, is primarily used for internal reporting purposes. It treats fixed manufacturing overhead costs as expenses in the period incurred, resulting in costs being attached to products only upon sale.<\/p>\r\n<\/li>\r\n<li>\r\n<p>Full costing, also called absorption costing, is commonly used for external reporting and financial statements. It includes all variable and fixed costs associated with production, providing a comprehensive view of the total cost of inventory.<\/p>\r\n<\/li>\r\n<li>\r\n<p>An example illustrates how variable costing aids in decision-making by considering only variable costs in evaluating a special order, leading to a more accurate assessment of profitability and informed business decisions.<\/p>\r\n<\/li>\r\n<li>\r\n<p>To streamline the implementation of these methods, businesses can leverage accounting management software like <a href=\"https:\/\/www.hashmicro.com\/accounting\">HashMicro&#8217;s Accounting System<\/a>, which automates cost calculations, and financial analysis, and reduces manual accounting tasks, improving efficiency and accuracy in financial management processes.<\/p>\r\n<\/li>\r\n<\/ul>\r\n<style>\r\n.button-cta-custom {\r\n    background-color: #8a0e19;\r\n    color: #fff !important;\r\n    -webkit-transition: all .3s ease;\r\n    transition: all .3s ease;\r\n    padding: 8px 24px;\r\n    display: inline-block;\r\n    border-radius: 8px;\r\n    font-size: 16px;\r\n    font-weight: bold;\r\n}\r\n.button-cta-custom:hover{\r\n\tbackground-color:#991b26\t\t\r\n}\r\n<\/style>\r\n<a class=\"button-cta-custom\" href=\"https:\/\/www.hashmicro.com\/free-product-tour\/?medium=cta-button\" target=\"_blank\">Click Here to Get the Free Demo!<\/a>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><a href=\"https:\/\/www.hashmicro.com\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" width=\"712\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2025\/11\/Free-Product-Tour-resized.webp\" alt=\"Free Demo\"><\/a>\u00a0<!-- <div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Content:\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div> -->\r\n\r\n<!-- <div class=\"dropdown-fixed-top\" id=\"dropdown-fixed-top\">\r\n\t<div class=\"row\">\r\n\t\t<p id=\"pilihDaftarIsi\">Table of Content<\/p>\r\n\t\t<p><i class=\"td-icon-menu-down\"><\/i><\/p>\r\n\t<\/div>\r\n\t\r\n\t<div>\r\n\t\t<ul id=\"list_toc_top\" class='list_toc'><\/ul>\r\n\t<\/div>\r\n<\/div> -->\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Table of Content<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\t@media (max-width: 992px) {\r\n\t\t#toc_group_article {\r\n\t\t\tpadding-top: 24px;\r\n\t\t}\r\n\t}\r\n\t\r\n\t#list_toc_float {\r\n\t\tmax-height: calc(100vh - 250px);\r\n\t\toverflow-y: auto;\r\n\t}\r\n\t\r\n\t#list_toc_top {\r\n\t\tdisplay: none;\r\n\t\tbackground: #fff;\r\n\t\tmargin-bottom: 4px;\r\n\t}\r\n\t\r\n\t#list_toc_top li {\r\n\t\tdisplay: block;\r\n\t\tmargin-left: 0;\r\n\t\tlist-style: none;\r\n\t}\r\n\t\r\n\t#list_toc_top a {\r\n\t\tpadding: 5px;\r\n\t\tdisplay: block;\r\n\t}\r\n\t\r\n\t#list_toc_top.show {\r\n\t\tdisplay: block;\r\n\t}\r\n\r\n\t#list_toc_top a {\r\n\t\tcolor: #434343;\r\n\t\tborder-bottom: 1px solid #bbb;\r\n\t}\r\n\t\r\n\t.dropdown-fixed-top {\r\n\t\tposition: fixed;\r\n\t\ttop: 59px;\r\n\t\twidth: 100%;\r\n\t\tz-index: 99;\r\n\t\tborder-bottom: 2px solid #9c171e;\r\n\t\tpadding: 12px;\r\n\t\tbackground: #fff;\r\n\t\twidth: 100%;\r\n\t\tcursor: pointer;\r\n\t\tdisplay: none;\r\n\t\tleft: 0;\r\n\t\tbox-shadow: 0 -2px 7px 6px rgba(0, 0, 0, 0.17);\r\n\t}\r\n\t\r\n\t#dropdown-fixed-top.show {\r\n\t\tanimation: showAnim 0.5s ease;\r\n\t\tdisplay: block;\r\n\t\topacity: 1;\r\n\t}\r\n\t\r\n\t@keyframes showAnim {\r\n\t\tfrom {\r\n\t\t\tdisplay: none;\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\tto {\r\n\t\t\tdisplay: block;\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t.dropdown-fixed-top #list_toc_top {\r\n\t\tmax-height: calc(50vh - 110px);\r\n\t\toverflow-y: scroll;\r\n\t}\r\n\t\r\n\t.dropdown-fixed-top .row {\r\n\t\tdisplay: flex;\r\n\t\tjustify-content: space-between\r\n\t}\r\n\t\r\n\t.dropdown-fixed-top .row p {\r\n\t\tmargin-bottom: 0;\r\n\t}\r\n\t\r\n\t#pilihDaftarIsi {\r\n\t\tmax-width: 100%;\r\n\t\toverflow: hidden;\r\n\t\twhite-space: nowrap;\r\n\t}\r\n\t\r\n\t@media (min-width: 1018px) {\r\n\t\t.dropdown-fixed-top {\r\n\t\t\tdisplay: none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_top li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor: #000;\r\n\t\tmargin-bottom: 6px;\r\n\t\tpadding-top: 2px;\r\n\t\tpadding-bottom: 2px;\r\n\t\ttransition: all 0.2s ease-in-out;\r\n\t\tfont-size: 15px;\r\n\t\tline-height: 18px;\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\r\n<\/style>\r\n\r\n<!-- ToC styling  -->\r\n<style>\r\n\t\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 0px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 90% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\t\t\tright: 5%;\r\n\t\t}\r\n\t}\r\n\t\r\n\t<\/style>\r\n\r\n<!-- ToC List for mobile -->\r\n<script>\r\n \/\/ Generate TOC based on headings\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  \/\/ Get the element that will contain the TOC\r\n  const tocList = document.getElementById('toc-list');\r\n\r\n  \/\/ Get the element with the ID 'article-left'\r\n  const article = document.querySelector('.td-post-content');\r\n\r\n  \/\/ Find all h2 elements within 'myarticle'\r\n  const headers = article.getElementsByTagName('h2');\r\n\r\n  \/\/ Loop through the h2 elements and create a list item for each one\r\n  for (let i = 0; i < headers.length; i++) {\r\n    const header = headers[i];\r\n    const headerText = header.textContent;\r\n\/\/     const headerId = 'header-' + i;\r\n    const headerId = headerText\r\n    .toLowerCase()\r\n    .trim()\r\n    .replace(\/[^\\w\\s-]\/g, '')  \/\/ hapus tanda baca\r\n    .replace(\/\\s+\/g, '-'); \/\/ ganti spasi jadi \"-\"\r\n\r\n    \/\/ Set an ID for the header if it doesn't have one\r\n    header.setAttribute('id', headerId);\r\n\r\n    \/\/ Create a list item for the TOC\r\n    const listItem = document.createElement('li');\r\n\r\n    \/\/ Create a link for the list item\r\n    const link = document.createElement('a');\r\n    link.setAttribute('href', '#' + headerId);\r\n    link.textContent = headerText;\r\n\r\n    \/\/ Append the link to the list item\r\n    listItem.appendChild(link);\r\n\r\n    \/\/ Append the list item to the TOC list\r\n    tocList.appendChild(listItem);\r\n  }\r\n});\r\n\r\n\/\/ Keep height and placement of content using placeholder in place of TOC\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const placeholderToc = document.querySelector('#placeholder-toc');\r\n\r\n  function setPlaceholderHeight() {\r\n    placeholderToc.style.height = `${toc.offsetHeight}px`;\r\n  }\r\n\r\n  \/\/ Set the initial height of the placeholder\r\n  setPlaceholderHeight();\r\n\r\n  \/\/ Update the height on window resize\r\n  window.addEventListener('resize', setPlaceholderHeight);\r\n});\r\n  const tocTitle = document.querySelector('#toc-title'); \/\/ Assuming header-faq is the element for TOC title\r\n\r\n\/\/ Sticky TOC and update heading\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const footer = document.querySelector('.td-footer-template-wrap');\r\n  const tocParent = toc.parentElement;\r\n  const divTop = tocParent.getBoundingClientRect().top + window.pageYOffset;\r\n  const tocHeight = toc.offsetHeight;\r\n  const triggerPoint = divTop + tocHeight + 700;\r\n  const footerHeight = footer.offsetHeight;\r\n  const triggerFooterPoint = footer.getBoundingClientRect().top + window.pageYOffset - footerHeight - footerHeight - footerHeight;\r\n  const phtoc = document.querySelector('#placeholder-toc');\r\n  const headers = document.querySelectorAll('.td-post-content h2');\r\n  const navLinks = document.querySelectorAll('#toc-list a');\r\n\t\r\n\tconst panel2 = document.querySelector(\"#toc .list\");\r\n\tvar icon = document.querySelector(\".toc-icon\");\r\n\r\n  let activeLink = null; \/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\/\/ \t\t\tconsole.log(\"current header text:\", currentHeaderText);\r\n\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t\r\n\t\t\tif(window.innerWidth < 767){\r\n\t\t\t\ttocTitle.textContent = 'Table of Content';\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\/\/     if (windowTop < triggerFooterPoint) {\r\n\/\/         toc.style.display = 'block';\r\n\/\/ \t}else{\r\n\/\/         toc.style.display = 'none';\r\n\/\/ \t}\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n        toc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n        toc.style.backgroundColor = \"#FFF\";\r\n\t\tpanel2.style.height = '0px';\r\n\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t  if(window.innerWidth < 767){\r\n\/\/ \t\t\t  const tocs = document.querySelector('#toc.sticky');\r\n\t\t\t  tocTitle.textContent = 'Table of Content'; \/\/ Reset title\r\n       \t\t  toc.style.width = '150px'; \/\/ Set width to match the parent element\r\n\t\t  }\r\n      }\r\n      if (currentHeader) {\r\n\/\/         console.log(\"activeLink:\", activeLink);\r\n        if (activeLink) {\r\n\/\/           tocTitle.textContent = activeLink.textContent; \/\/ Update TOC title\r\n          tocTitle.textContent = activeLink ? activeLink.textContent : \"\"; \/\/ Update title only if activeLink exists\r\n        }\r\n      }\r\n    } else {\r\n      toc.classList.remove('sticky');\r\n      phtoc.style.display = \"none\";\r\n      toc.style.width = 'unset'; \/\/ Reset to original width\r\n      toc.style.backgroundColor = \"#FFF\";\r\n      tocTitle.textContent = 'Table of Content'; \/\/ Reset title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\/\/ \t\t\t\ttoc.style.paddingBottom = '6px'; \r\n\t\t\t\tif(window.innerWidth > 768){\r\n\t\t\t\t\tif(!toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = \"unset\";\r\n\/\/ \t\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t\t}\r\n\t\t\t\t\tif (toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = '${tocParent.offsetWidth}px';\r\n\t\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t\t}\r\n\t\t\t\t}\r\n\t\t\t\tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = \"unset\"; \/\/ Reset width\r\n\t\t\t\t}\r\n\t\t\t\ttoc.style.backgroundColor = \"#FFF1F1\";\r\n\t\t\t} else {\r\n\t\t\t  panel.style.height = panel.scrollHeight + \"px\";\r\n\t\t\t  icon.style.transform = \"rotate(0deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t  tocTitle.textContent = 'Table of Content'; \/\/ Reset title\r\n\t\t\t\ttoc.style.paddingBottom = '24px';\r\n\t\t\t \tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t  });\r\n\r\n\t\t  \/\/ Close TOC when a link inside it is clicked\r\n\t\t  var tocLinks = document.querySelectorAll(\"#toc .list a\");\r\n\t\t  tocLinks.forEach(function(link) {\r\n\t\t\tlink.addEventListener(\"click\", function() {\r\n\t\t\t  var panel = document.querySelector(\"#toc .list\");\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t});\r\n\t\t  });\r\n\t\t});\r\n\r\n\r\n\r\n\t\r\n\/\/ \tmake the heading at the center of the viewport\r\n\/\/ \tdocument.addEventListener('DOMContentLoaded', function() {\r\n\/\/     \/\/ Add click event listener to all links in the TOC list\r\n\/\/     document.querySelectorAll('#toc-list a').forEach(anchor => {\r\n\/\/         anchor.addEventListener('click', function (e) {\r\n\/\/             e.preventDefault(); \/\/ Prevent the default behavior of jumping to the anchor\r\n\/\/ \/\/ \t\t\tconsole.log(\"prevent default\");\r\n\/\/             const targetId = this.getAttribute('href').substring(1); \/\/ Get the ID of the target element\r\n\/\/             const targetElement = document.getElementById(targetId); \/\/ Get the target element\r\n\r\n\/\/             if (targetElement) {\r\n\/\/                 const headerHeight = document.querySelector('#toc .header').offsetHeight; \/\/ Get the height of the fixed header\r\n\/\/                 const windowHeight = window.innerHeight; \/\/ Get the height of the viewport\r\n\/\/                 const targetOffset = targetElement.offsetTop; \/\/ Get the top offset of the target element\r\n\/\/                 const scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight); \/\/ Calculate the scroll position to center the target element\r\n\r\n\/\/                 \/\/ Scroll to the calculated position smoothly\r\n\/\/                 window.scrollTo({\r\n\/\/                     top: scrollTo,\r\n\/\/                     behavior: 'smooth'\r\n\/\/                 });\r\n\/\/             }\r\n\/\/         });\r\n\/\/     });\r\n\/\/ });\r\n<\/script>\r\n\r\n<!-- START script lama -->\r\n<!-- <script>\r\n\/\/ \tvar pilihDaftarIsi = document.getElementById('pilihDaftarIsi');\r\n\t\r\n\/\/ \tdocument.addEventListener('DOMContentLoaded', function() {\r\n\/\/ \t\tvar dropdownFixedTop = document.querySelector('.dropdown-fixed-top');\r\n\r\n\/\/ \t\tdropdownFixedTop.addEventListener('click', function() {\r\n\/\/ \t\t\tvar dropdownContent = this.querySelector('.list_toc');\r\n\/\/ \t\t\tdropdownContent.classList.toggle('show');\r\n\/\/ \t\t});\r\n\r\n\/\/ \t\twindow.addEventListener('click', function(event) {\r\n\/\/ \t\t\tvar listTocTop = document.getElementById('list_toc_top');\r\n\r\n\/\/ \t\t\tif (!dropdownFixedTop.contains(event.target)) {\r\n\/\/ \t\t\t\tlistTocTop.classList.remove('show');\r\n\/\/ \t\t\t}\r\n\/\/ \t\t});\r\n\/\/ \t});\r\n\t\r\n\/\/ \tvar daftarIsiContainer = document.getElementById('toc_group_article');\r\n\/\/ \tvar dropdownFixedTop = document.getElementById('dropdown-fixed-top');\r\n\/\/     var triggered = false; \/\/ Flag to keep track of whether the function has been triggered\r\n\r\n\/\/     window.addEventListener('scroll', function() {\r\n\/\/         if (!triggered && isCompletelyScrolledPast(daftarIsiContainer)) {\r\n\/\/             showSectionDropdownFixedTop(false);\r\n\/\/             triggered = true;\r\n\/\/         } else if (triggered && !isCompletelyScrolledPast(daftarIsiContainer)) {\r\n\/\/             showSectionDropdownFixedTop(true);\r\n\/\/             triggered = false;\r\n\/\/         }\r\n\/\/     });\r\n\r\n\/\/     function isCompletelyScrolledPast(element) {\r\n\/\/         var elementTop = element.getBoundingClientRect().top;\r\n\/\/         var elementBottom = element.getBoundingClientRect().bottom;\r\n\/\/         return elementTop < 0 && elementBottom < 0;\r\n\/\/     }\r\n\r\n\/\/     function showSectionDropdownFixedTop(show) {\r\n\/\/ \t\tif (show) {\r\n\/\/ \t\t\tdropdownFixedTop.classList.remove(\"show\");\r\n\/\/ \t\t} else {\r\n\/\/ \t\t\tdropdownFixedTop.classList.add(\"show\");\r\n\/\/ \t\t}\r\n\/\/     }\r\n<\/script> -->\r\n<!-- <script>\r\n    \/\/ Scrollspy function to highlight the active TOC item based on the scroll position\r\n  function scrollSpy(tocClass) {\r\n    const scrollPosition = window.scrollY;\r\n\r\n    \/\/ Find the active h2 and h3 headings based on their position in the corresponding TOC\r\n    let activeH2 = null;\r\n    let activeH3 = null;\r\n\r\n    const tocItems = document.querySelectorAll(`.${tocClass} li`);\r\n    tocItems.forEach(item => {\r\n      const a = item.querySelector('a');\r\n      if (!a) return;\r\n      const href = a.getAttribute('href');\r\n      const targetId = href.substring(1); \/\/ Remove the '#' from the href to get the target ID\r\n      const targetElement = document.getElementById(targetId);\r\n      if (!targetElement) return;\r\n\r\n      const targetTop = targetElement.getBoundingClientRect().top + scrollPosition;\r\n      const nextItem = item.nextElementSibling;\r\n      const nextTop = nextItem ? nextItem.getBoundingClientRect().top + scrollPosition : Infinity;\r\n\r\n      if (targetTop <= scrollPosition + 150) {\r\n        if (a.parentElement.parentElement === tocItems) {\r\n          \/\/ The h2 heading is at the root level of the TOC\r\n          activeH2 = { id: targetId, level: 'h2' };\r\n        } else {\r\n          \/\/ The h3 heading is nested under an h2 heading\r\n          const parentH2 = a.parentElement.parentElement.previousElementSibling;\r\n          if (parentH2) {\r\n            const h2Link = parentH2.querySelector('a');\r\n            if (h2Link) {\r\n              const h2Href = h2Link.getAttribute('href');\r\n              const h2Id = h2Href.substring(1);\r\n              activeH2 = { id: h2Id, level: 'h2' };\r\n            }\r\n          }\r\n          activeH3 = { id: targetId, level: 'h3' };\r\n        }\r\n      }\r\n\r\n      if (targetTop > scrollPosition + 150 && nextTop > scrollPosition + 150 && !activeH3) {\r\n        \/\/ Reset the activeH2 when there are no more active h3 headings\r\n        activeH2 = null;\r\n      }\r\n    });\r\n\r\n    \/\/ Update the active state for the TOC items\r\n    tocItems.forEach(item => {\r\n      item.classList.remove('active');\r\n      const a = item.querySelector('a');\r\n      if (a) {\r\n        const href = a.getAttribute('href');\r\n        const targetId = href.substring(1);\r\n        if ((activeH2 && activeH2.id === targetId) || (activeH3 && activeH3.id === targetId)) {\r\n          item.classList.add('active');\r\n\t\t  pilihDaftarIsi.innerHTML = a.textContent;\r\n        }\r\n      }\r\n    });\r\n  }\r\n\r\n  \/\/ Call scrollSpy for each TOC on window scroll\r\n  const tocClasses = ['list_toc', 'list_toc_float', 'list_toc_top']; \/\/ Add other TOC class names here if you have more than two instances\r\n  tocClasses.forEach(tocClass => {\r\n    window.addEventListener('scroll', () => scrollSpy(tocClass));\r\n  });\r\n<\/script> -->\r\n<!-- END script lama -->\r\n\t\r\n<script>\r\n    \/\/ Scrollspy function to highlight the active TOC item based on the scroll position\r\n  function scrollSpy(tocClass) {\r\n    const scrollPosition = window.scrollY;\r\n\r\n    \/\/ Find the active h2 and h3 headings based on their position in the corresponding TOC\r\n    let activeH2 = null;\r\n    let activeH3 = null;\r\n\r\n    const tocItems = document.querySelectorAll(`.${tocClass} li`);\r\n    tocItems.forEach(item => {\r\n      const a = item.querySelector('a');\r\n      if (!a) return;\r\n      const href = a.getAttribute('href');\r\n      const targetId = href.substring(1); \/\/ Remove the '#' from the href to get the target ID\r\n      const targetElement = document.getElementById(targetId);\r\n      if (!targetElement) return;\r\n\r\n      const targetTop = targetElement.getBoundingClientRect().top + scrollPosition;\r\n      const nextItem = item.nextElementSibling;\r\n      const nextTop = nextItem ? nextItem.getBoundingClientRect().top + scrollPosition : Infinity;\r\n\r\n      if (targetTop <= scrollPosition + 150) {\r\n        if (a.parentElement.parentElement === tocItems) {\r\n          \/\/ The h2 heading is at the root level of the TOC\r\n          activeH2 = { id: targetId, level: 'h2' };\r\n        } else {\r\n          \/\/ The h3 heading is nested under an h2 heading\r\n          const parentH2 = a.parentElement.parentElement.previousElementSibling;\r\n          if (parentH2) {\r\n            const h2Link = parentH2.querySelector('a');\r\n            if (h2Link) {\r\n              const h2Href = h2Link.getAttribute('href');\r\n              const h2Id = h2Href.substring(1);\r\n              activeH2 = { id: h2Id, level: 'h2' };\r\n            }\r\n          }\r\n          activeH3 = { id: targetId, level: 'h3' };\r\n        }\r\n      }\r\n\r\n      if (targetTop > scrollPosition + 150 && nextTop > scrollPosition + 150 && !activeH3) {\r\n        \/\/ Reset the activeH2 when there are no more active h3 headings\r\n        activeH2 = null;\r\n      }\r\n    });\r\n\r\n    \/\/ Update the active state for the TOC items\r\n    tocItems.forEach(item => {\r\n      item.classList.remove('active');\r\n      const a = item.querySelector('a');\r\n      if (a) {\r\n        const href = a.getAttribute('href');\r\n        const targetId = href.substring(1);\r\n        if ((activeH2 && activeH2.id === targetId) || (activeH3 && activeH3.id === targetId)) {\r\n          item.classList.add('active');\r\n        }\r\n      }\r\n    });\r\n  }\r\n\r\n  \/\/ Call scrollSpy for each TOC on window scroll\r\n  const tocClasses = ['list_toc', 'list_toc_float']; \/\/ Add other TOC class names here if you have more than two instances\r\n  tocClasses.forEach(tocClass => {\r\n    window.addEventListener('scroll', () => scrollSpy(tocClass));\r\n  });\r\n<\/script>\r\n\t\r\n\r\n<!-- ToC List for desktop side bar, diganti jadi inject by php, di code snippet \"Sidebar Accordion\" -->\r\n<!--  <script>\r\n\tdocument.addEventListener(\"DOMContentLoaded\", function() {\r\nToC List for desktop side bar, diganti jadi inject by php, di code snippet \"Sidebar Accordion\"\r\n        Fungsi untuk mengubah teks menjadi format id\r\n        function formatId(text) {\r\n            return text.trim().replace(\/[^\\w\\d]+\/g, '_');\r\n        }\r\n\r\n        \/\/ Fungsi untuk membuat nested list\r\n        function createNestedList(parentNode, children) {\r\n            if (children.length === 0) return;\r\n\r\n            const nestedUl = document.createElement('ul');\r\n            children.forEach(child => {\r\n                const nestedLi = document.createElement('li');\r\n                const nestedA = document.createElement('a');\r\n                nestedA.textContent = child.title;\r\n                nestedA.href = `#${child.id}`;\r\n                nestedLi.appendChild(nestedA);\r\n                nestedUl.appendChild(nestedLi);\r\n\r\n                if (child.children.length > 0) {\r\n                    createNestedList(nestedLi, child.children);\r\n                }\r\n            });\r\n\r\n            parentNode.appendChild(nestedUl);\r\n        }\r\n\r\n        \/\/ Membuat objek untuk menyimpan daftar h2 dan h3 beserta judulnya\r\n        const headings = [];\r\n\r\n           \/\/ Mengambil semua elemen h2 dan h3\r\n        const elements = document.querySelectorAll('.td-post-content h2');\r\n\t\t\t\/\/, .td-post-content h3\r\n\r\n        elements.forEach(element => {\r\n            if (element.tagName === 'H2') {\r\n                const id = formatId(element.textContent);\r\n                element.id = id;\r\n\t\t\t\tif (element.textContent.toLowerCase() === \"key takeaways\") {return;} \/\/ Kalau Key Takeaways, jangan dimasukin\r\n                headings.push({ level: 'h2', id: id, title: element.textContent, children: [] });\r\n            } else if (element.tagName === 'H3') {\r\n                const id = formatId(element.textContent);\r\n                element.id = id;\r\n                if (headings.length > 0) {\r\n                    headings[headings.length - 1].children.push({ level: 'h3', id: id, title: element.textContent, children: [] });\r\n                }\r\n            }\r\n        });\r\n\r\n        \/\/ Membuat list HTML dari objek headings\r\n        const ul = document.getElementById('list_toc');\r\n        let currentUl = ul;\r\n        headings.forEach(heading => {\r\n            const li = document.createElement('li');\r\n            const a = document.createElement('a');\r\n            a.textContent = heading.title;\r\n            a.href = `#${heading.id}`;\r\n            li.appendChild(a);\r\n\r\n            if (heading.level === 'h2') {\r\n                \/\/ Menyimpan ul saat ini untuk menambahkan nested ul\r\n                currentUl = li;\r\n                ul.appendChild(li);\r\n            } else if (heading.level === 'h3') {\r\n                if (!currentUl.lastElementChild || currentUl.lastElementChild.tagName !== 'UL') {\r\n                    \/\/ Jika belum ada nested ul, buat satu\r\n                    const nestedUl = document.createElement('ul');\r\n                    currentUl.appendChild(nestedUl);\r\n                    currentUl = nestedUl;\r\n                }\r\n                currentUl.appendChild(li);\r\n            }\r\n\r\n            createNestedList(li, heading.children);\r\n        });\r\n\t\tDapatkan elemen ul dengan id 'list_toc_float'\r\nconst ulFloat = document.getElementById('list_toc');\r\nconst ulJourney = document.getElementById('list_journey');\r\n\r\nDapatkan isi (child elements) dari ul dengan id 'list_toc_float'\r\n\tif (ulFloat !== null) {\r\n\t\tconst clonedChildren = ulFloat.cloneNode(true).children;\r\n\t\tconst ulToc = document.getElementById('list_toc_float');\r\n\t\tconst ulTocTop = document.getElementById('list_toc_top');\r\n\t\tif ((ulToc !== null || ulToc !== undefined) && window.innerWidth > 1018){\r\n\t\t\tulToc.append(...clonedChildren);\r\n\t\t} else {\r\n\t\t\tulTocTop.append(...clonedChildren);\r\n\t\t}\r\n\t} \r\n\r\n\tif (ulJourney !== null) {\r\n\t\tconst clonedChildrenJourney = ulJourney.cloneNode(true).children;\r\n\t\tconst ulTocJourney = document.getElementById('list_toc_journey');\r\n\t\tulTocJourney.append(...clonedChildrenJourney);\r\n\t} \r\n\t\r\n        Fungsi untuk mengambil tinggi navbar\r\n        function getNavbarHeight() {\r\n            const navbar = document.getElementById('tdi_34');\r\n            return navbar ? navbar.offsetHeight : 0;\r\n        }\r\n\r\n        \/\/ Fungsi untuk menambahkan offset posisi scroll\r\n        function scrollToElementWithOffset(elementId) {\r\n            const element = document.getElementById(elementId);\r\n            if (element) {\r\n                const offset = getNavbarHeight();\r\n                const elementPosition = element.getBoundingClientRect().top;\r\n                const offsetPosition = elementPosition - offset-40;\r\n\r\n                window.scrollBy({\r\n                    top: offsetPosition,\r\n                    behavior: 'smooth'\r\n                });\r\n            }\r\n        }\r\n\r\n        \/\/ Fungsi untuk menangani klik pada tautan judul\r\n        function handleTitleClick(event) {\r\n            event.preventDefault();\r\n            const href = event.target.getAttribute('href').substr(1);\r\n            scrollToElementWithOffset(href);\r\n        }\r\n\r\n        \/\/ Tambahkan event listener untuk semua tautan judul\r\n        const titleLinks = document.querySelectorAll('a[href^=\"#\"]');\r\n        titleLinks.forEach(link => {\r\n            link.addEventListener('click', handleTitleClick);\r\n        });\r\n\t});\r\n    <\/script> -->\r\n<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"meaning\"><strong>What is Variable Costing?<\/strong><\/h2>\r\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-12702 size-large\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-1024x683.jpg\" alt=\"variable cost\" width=\"696\" height=\"464\" srcset=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-1024x683.jpg 1024w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-300x200.jpg 300w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-768x512.jpg 768w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-1536x1024.jpg 1536w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-150x100.jpg 150w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-696x464.jpg 696w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920-1068x712.jpg 1068w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/03\/savings-g1d0aeaf74_1920.jpg 1920w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><\/p>\r\n\r\n\r\n\r\n<p>Businesses use two basic costing approaches variable costing and full costing. Variable costing, also known as marginal costing, is mainly used for internal reporting. Whereas, full costing, also known as absorption costing, is mainly for external reports.<\/p>\r\n\r\n\r\n\r\n<p>Fixed manufacturing overhead costs are expensed in the period in which they are incurred under direct costing. The product carries these costs until it is sold, at which point they are deducted from the income statement as costs of goods sold. On the contrary, absorption costing allows income to rise in tandem with production.<\/p>\r\n\r\n\r\n\r\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/www.hashmicro.com\/blog\/difference-between-expense-and-cost-in-accounting\/\" target=\"_blank\" rel=\"noopener\">What are The Differences between Expense and Cost in Accounting?<\/a><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"what\"><strong>What is the Full Costing?<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>Businesses use two basic costing approaches: variable costing, also known as marginal costing, mainly used for internal reporting, and full costing, also known as absorption costing, mainly for external reports.<\/p>\r\n\r\n\r\n\r\n<p>Fixed manufacturing overhead costs are expensed in the period in which they are incurred under direct costing. The product carries these costs until it is sold, at which point they are deducted from the income statement as costs of goods sold. On the contrary, absorption costing allows income to rise in tandem with production.<\/p>\r\n\r\n\r\n\r\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/www.hashmicro.com\/blog\/definition-cogs\/\" target=\"_blank\" rel=\"noopener\">COGS (Cost of Goods Sold) \u2013 A Component in Business You Have to Know<\/a><\/p>\r\n\r\n\r\n\r\n<p>Businesses use full costing to determine the total cost of something. For example, in financial statements to record the total cost of inventory. In addition, financial reporting under a variety of accounting frameworks requires full costing, including Generally Accepted Accounting Principles and International Financial Reporting Standards, as well as income tax reporting.<\/p>\r\n\r\n\r\n\r\n<p>The basic idea behind full costing is to assign all variable costs to a cost object and allocate overhead costs. A cost object is anything that collects cost information, such as a customer, product, service, store, geographic region, product line, and so on. As a result, the costs that the manufacturer will assign under full costing are as follows:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Materials in direct contact<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Explicit labor<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Commissions<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Variable <a href=\"https:\/\/www.investopedia.com\/terms\/o\/overhead.asp\" target=\"_blank\" rel=\"noopener\">overhead<\/a> has been allocated<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Fixed overhead has been allocated<\/li>\r\n<\/ul>\r\n<p><strong>Also read:\u00a0<\/strong><a href=\"https:\/\/www.hashmicro.com\/blog\/the-concept-of-cost-structure\/\">Cost Structure: Definition, Component and Example<\/a><\/p>\r\n\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"the\"><strong>The Purpose of Variable Costing<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>The purpose of variable costing is to provide information for management in short-term decision-making, namely:<\/p>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\">\r\n<li>The management can find out the contribution limit that is useful for determining the planned profit through the analysis of the cost-volume-profit relationship and for decisions for management in making short-term policies.<\/li>\r\n<li><a href=\"https:\/\/www.hashmicro.com\/procurement-and-purchasing-management-system\" target=\"_blank\" rel=\"noopener\">Management has the convenience<\/a> of facilitating operational status monitoring, making assessments, and accountability to other departments within the company.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"are\"><strong>What are the advantages of Full Costing and Variable Costing?<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>For most of you who may still be confused about choosing the suitable method for your business, the continuation of this article can add to your insight before making the appropriate choice.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">The advantages of the full costing method<\/h3>\r\n\r\n\r\n\r\n<p>Full costing has several advantages.<\/p>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\">\r\n<li>Full costing yields more accurate production costs. The company takes into account all overhead costs.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\" start=\"2\">\r\n<li>Inventory levels are higher. Because it includes fixed costs in calculating production costs, the cost is attached to the product as long as it has not been sold. As a result, inventory figures increase.\u00a0<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\" start=\"3\">\r\n<li>Both operating profit and net income increased. Because it is linked to a product, the firm will only recognize fixed overheads in the cost of goods sold when the product is sold. Even if it has not been sold, the overhead costs will remain attached to the inventory. When compared to variable costing, this results in a higher operating profit figure. Under variable costing, on the other hand, the company recognizes overhead costs as operating expenses even though they have not been sold.<\/li>\r\n<\/ol>\r\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/www.hashmicro.com\/blog\/cost-of-revenue\/\" target=\"_blank\" rel=\"noopener\">What is the Cost of Revenue and How to Calculate it?<\/a><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">The advantages of variable costing<\/h3>\r\n\r\n\r\n\r\n<p>The benefits of variable costing are as follows:<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Operations planning<\/h4>\r\n\r\n\r\n\r\n<p>Variable costing provides management with data on variable costs and contribution margins needed to make daily decisions on special orders, capacity expansion, and production shutdown.<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">CVO analysis<\/h4>\r\n\r\n\r\n\r\n<p>In variable costing, income statements show gross contribution margin, contribution margin, and total fixed cost which we can use while using the c-v-p analysis.<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Product costs<\/h4>\r\n\r\n\r\n\r\n<p>The selling price for a custom order takes into account the variable cost of production. Therefore, variable costing can quickly provide data on variable production costs.<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Management decisions<\/h4>\r\n\r\n\r\n\r\n<p>The management can better understand the impact of period costs on profits by using variable costing income statements.<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Management control<\/h4>\r\n\r\n\r\n\r\n<p>Variable costing reports are far more effective for management control than absorption costing reports because profit goals link with variable costing reports and can identify organizational responsibility.<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Budgeting<\/h4>\r\n\r\n\r\n\r\n<p>The manufacturer only considers variable manufacturing costs to ease cost control.<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Profit change<\/h4>\r\n\r\n\r\n\r\n<p>Sales affect variable costing net income. As a result, it is clear how much the manufacturer will earn additional profit from increased sales.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"disadvantages\"><strong>What are the disadvantages of Full Costing and Variable Costing?<\/strong><\/h2>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Disadvantages of the full costing method<\/h3>\r\n\r\n\r\n\r\n<p>Full costing is less proper in practice because managers are more likely to require the incremental cost of something (indirect costing) or the amount of bottleneck capacity that a cost object consumes (as in throughput analysis). The following are some of the issues that have arisen as a result of full costing:<\/p>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\">\r\n<li><strong>Setting the price<\/strong>. Suppose the sales department has to set product prices higher than the full cost of a product. In that case, the resulting prices may be exorbitant, especially in incremental pricing situations where the company has excess capacity and could realistically set prices just above direct cost levels. This is especially problematic when competitors price solely on their direct costs, resulting in much lower prices.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\" start=\"2\">\r\n<li><strong>Fraud<\/strong>. Someone could authorize a significant increase in production and use full costing to allocate overhead to units that will be kept in inventory, effectively deferring the recognition of overhead expenses to a later period. This can generate short-term profits.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\" start=\"3\">\r\n<li><strong>Problems with allocation<\/strong>. We cannot reliably overhead to cost objects by definition; otherwise, they would be direct costs. As a result, an overhead allocation method may assign unnecessary costs to a cost object. We can mitigate this problem can by employing activity-based costing, a more precise method of cost allocation.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Disadvantages of variable costing<\/h3>\r\n\r\n\r\n\r\n<p>Despite all of its benefits, we cannot describe variable costing as flawless. It has the following limitations and disadvantages:<\/p>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\">\r\n<li><strong>Cost inaccuracy<\/strong>: A directly identifiable fixed cost that is specifically related to production. However, all fixed costs are treated as period costs. As a result, the production cost may be inaccurate.<\/li>\r\n<li><strong>Long-term pricing<\/strong>: Variable costing is ineffective for long-term pricing because it does not account for fixed factory overhead as a product cost.<\/li>\r\n<li><strong>Undervaluation of inventory<\/strong>: Variable costing undervalues finished goods and work-in\u00adprogress. This is due to the absence of fixed factory overhead in the product cost. As a result, the balance sheet does not provide an accurate and fair picture.<\/li>\r\n<li><strong>External reporting and tax reporting<\/strong>: Until now, external reporting and tax reporting have not accepted variable costing. It applies only to internal management. Variable costing is not in accordance with GAAP.<\/li>\r\n<li>It is difficult to separate costs into fixed and variable components, especially when the costs are semi-variable.<\/li>\r\n<li>In the long run, there is no fixed cost.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"example\"><strong>Example of Variable Costing<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>IFC is a phone case manufacturer. The following are excerpts from the company&#8217;s income statement for the most recent fiscal year (2018):<\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-full\">\r\n<figure id=\"attachment_9093\" aria-describedby=\"caption-attachment-9093\" style=\"width: 600px\" class=\"wp-caption alignnone\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-9093\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/11\/variable-costing2-600x298-1.webp\" alt=\"Example of Variable Costing\" width=\"600\" height=\"298\" srcset=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/11\/variable-costing2-600x298-1.webp 600w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/11\/variable-costing2-600x298-1-300x149.webp 300w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2021\/11\/variable-costing2-600x298-1-150x75.webp 150w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-9093\" class=\"wp-caption-text\">Example of Variable Costing<\/figcaption><\/figure>\r\n<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p>IFC does not publish an inventory of available positions. However, in 2018, the company produced 1,000,000 phone cases, with total manufacturing costs of $598,000 (approximately $0.60 per phone case).\u00a0The manufacturer recently received a special order for 1,000,000 phone cases at a total cost of $400,000.<\/p>\r\n\r\n\r\n\r\n<p>Despite having ample capacity, the manager is hesitant to accept this special order because it is less than the $598,000 cost outlined in the company&#8217;s income statement to manufacture the initial 1,000,000 phone cases. As the company&#8217;s cost accountant, the manager wants you to decide whether or not to accept this order.<\/p>\r\n<p><strong>Related article<\/strong>: <a href=\"https:\/\/www.hashmicro.com\/blog\/fixed-costs-and-variable-costs\/\" target=\"_blank\" rel=\"noopener\">Fixed Costs and Variable Costs: Get to Know the Definition and the Examples!<\/a><\/p>\r\n\r\n\r\n\r\n<p>First, it is critical to understand that the $598,000 in manufacturing costs for 1,000,000 phone cases include fixed costs such as insurance, equipment, building, and utilities. As a result, when deciding whether to accept this special order, we should employ variable costing.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Variable costing:<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Direct material of $150,000<\/li>\r\n<li>Direct labor of $75,000<\/li>\r\n<li>Variable manufacturing overhead of $80,000<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Total = $305,000 \/ 1,000,000 units produced = $0.305 variable cost per case<\/p>\r\n\r\n\r\n\r\n<p>The cost to produce a special order of 1,000,000 phone cases = $0.305 x 1,000,000 = $305,000. Therefore, there is a contribution margin of $400,000 \u2013 $305,000 = $95,000.<\/p>\r\n\r\n\r\n\r\n<p>The manufacturer should accept the special order based on their variable costing method. The special order will increase the company&#8217;s profits by $95,000.<\/p>\r\n\r\n\r\n\r\n<p>Understanding why the manager was hesitant to accept the order is critical. In decision-making, the manager included fixed costs in the cost calculation, which is incorrect. Due to ample capacity, the company will incur no additional fixed costs to produce the special order of 1,000,000. As you can see, variable costing is crucial in decision-making!<\/p>\r\n\r\n\r\n\r\n\r\n\r\n<h3><strong>Conclusion<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Thus a brief explanation of variable costing and the difference between it and<em> full costing<\/em>. Variable costing is a method of calculating all costs used to make a product. These costs have the amount that continues to change according to the volume of business activities.<\/p>\r\n\r\n\r\n\r\n<p>Full costing is an accounting method that explains all costs that companies incur in the production process, such as variable, fixed, direct, and investment costs.<\/p>\r\n<a href=\"https:\/\/www.hashmicro.com\/accounting?medium=moneysite-banner\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" width=\"712\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2025\/06\/Accounting.webp\" alt=\"Accounting\"><\/a>\r\n\r\n\r\n\r\n<p>If the implementation of the two methods is still too complex, you can use the Accounting System from HashMicro. This system helps you to know the financial condition of each branch of the business with in-depth analysis and accurate estimation of your income and reduces time-consuming manual accounting processes such as bookkeeping, asset depreciation calculations, and others.<\/p>\r\n\r\n\r\n\r\n<p>There are still other exciting features that you can apply. So what are you waiting for? Get the <a href=\"https:\/\/www.hashmicro.com\/free-product-tour\/\">free demo<\/a> today!<\/p>\r\n\r\n\r\n\r\n<p>{ &#8220;@context&#8221;: &#8220;https:\/\/schema.org&#8221;, &#8220;@type&#8221;: &#8220;FAQPage&#8221;, &#8220;mainEntity&#8221;: { &#8220;@type&#8221;: &#8220;Question&#8221;, &#8220;name&#8221;: &#8220;What are variable costs?&#8221;, &#8220;acceptedAnswer&#8221;: { &#8220;@type&#8221;: &#8220;Answer&#8221;, &#8220;text&#8221;: &#8220;Variable costs are costs that change in proportion to business activities.&#8221; } } }<\/p>","protected":false},"excerpt":{"rendered":"<p>Variable costing is a method that only considers variable costs in calculating production expenses. This method works by focusing on costs that change with production levels, such as raw materials and direct labor. Have you ever wondered how businesses keep costs manageable while maximizing profits? Variable costing helps businesses make smarter decisions by highlighting production [&hellip;]<\/p>\n","protected":false},"author":199,"featured_media":9099,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[153],"tags":[1590,1589],"class_list":{"0":"post-9070","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting","8":"tag-costing","9":"tag-variable-costing"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Variable Costing: Advantages, Disadvantages, and Examples<\/title>\n<meta name=\"description\" content=\"Variable costing or marginal costing is a managerial accounting cost concept of calculating the overall cost used to make a product.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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