Definition of costing methods Full costing: this is a costing method used in determining the complete end-to-end cost of producing services or products. This method factors in all variable, fixed, and direct overhead costs XX. Variable costing: this method only assigns variable costs to inventory XX. Therefore, it charges all overhead costs to expense in the period incurred, while variable overhead and direct materials costs are assigned to inventory. Target costing: in this method, a company plans in advance for margins, product costs, and price points it wants to achieve for a new product XX. Lifecycle costing: this method compiles all costs to the producer or owner of an asset will incur during its lifespan. Activity-based costing: this method assigns