PPC Entourage breaks down accounts by number of products. Some products have multiple variations, and each variation counts as one product.
Yes, each individual variation counts as its own ASIN. Using Entourage, you will be able to analyze every product, variation by variation, and create, optimize, and expand upon campaigns accordingly. If you have a single product with five colors, each color variation counts as a product.
However - you do not have to select every variation in Entourage. You may select any number or combination of variations based on your own preference.