Introduction Variable Costing Method: Variable costing method is a method where costing can be discovered including variable manufacturing costs. The fixed factory visual projection is considered a period cost - it is summarized with the selling and administrative costs in the period earned. In other words, the fixed factory visual projection constitutes a period expense. Uses of Variable Costing Method: Variable costing method is used only for internal management. Uses of the variable costing method include:* Inventory estimation and revenue determination;* Break-even investigation and cost-volume-profit investigation;* Proper cost analysis; and* Short-term decision making. However, the variable cost method is not suitable for external hedging or tax hedging. Companies that use the variable costing method for internal hedging must convert to absorption costing for external hedging. In absorption costing, the cost to be recorded includes...