Methods

In the absorption costing we include all the costs including variable and fixed costs in the production costs like this: Sales less: costs Direct material Direct labour Variable overheads Fixed overheads Total production cost Profit In the marginal costing we include all the marginal costs in the production costs but not fixed costs like this. Sales less: costs Direct material Direct labour Variable overheads Total production cost Fixed overheads Profit In both methods, fixed costs are included but the point is that whether we should include them in the production costs or not. But what is the point of these methods because the fixed costs are deducted anyways?