Absorption Costing Definition
Absorption Costing Definition
Absorption costing is a costing method that includes all manufacturing costs – direct materials, direct labour, and both variable and fixed overhead – as part of the cost of a finished unit of product. This term is synonymous with full costing method.
Other Related Accounting Articles:
- Income Comparison of Variable and Absorption Costing
- Advantages and Disadvantages of Absorption Costing System
- Absorption Costing Approach to Pricing
- Factory Overhead Idle Capacity Variance
- Factory Overhead Spending Variance
- Overall or Net Factory Overhead Variance
- Direct Labor Standards
- Standard Costing and Variance Analysis Problems & Solution
- Flow of Costs
- Direct Labor Efficiency Variance
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