This spreadsheet presents, through an example, the importance of the Variable Costing method for management purposes. To explain the differences, an example is presented with the production and sales plan of a small company for 4 years. Information is given on Variable Costs, Fixed Costs, as well as the Sales Price. The example explains how Absorption Costing is insufficient for decision-making, since fixed costs are not production costs; there is an unfair apportionment and this harms other products. Thus, the spreadsheet as Variable Costing is the alternative for decision-making. In this costing, Profits are proportional to sales. Although this costing method is not accepted by the Independent Audit, since it goes against the Principle of Accrual and Confrontation, there are ways to adapt Variable Costing to Absorption Costing, as shown in the example.
 Note: The spreadsheets available for download are based on references from blog posts and should be viewed only as supplementary study material. We do not offer support for technical questions regarding the theoretical content of the spreadsheets. This material does not exempt the user from adequate monitoring by a professional in order to obtain greater reliability, both in execution and in calculations.