Introduction Variable Costing Method: Variable costing method is a method in which costs can be found out by including variable production costs. The fixed visual projection of the factory is considered a period cost: it is extracted together with the administrative and selling expenses in the deserved period. That is, the fixed visual projection of the factory is considered as a periodic expense. Uses of Variable Costing Method: Variable costing method is used for internal management only. Uses of the variable costing method include:* Inventory estimating and revenue determination;* Break-even investigation and Cost-Volume-Profit investigation;* Proper cost analysis; and* Short-term decision making. The variable cost method, however, is not suitable for external coverage or income tax coverage. Companies that use the variable costing method for internal coverage must convert it to absorption costing for external coverage. In the case of absorption costs, the cost to be recorded includes...