Absorption costing

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Revision as of 20:05, 6 February 2019 by imported>Doug Williamson (Create page. Source: Oxford English Dictionary and Scott, Accounting for Business 3rd edition)
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Cost and management accounting.

Absorption costing is a method of costing which takes into account indirect costs (overheads) as well as all direct costs of production.

Absorption costing assumes an estimated normal level of production for the purpose of allocating overheads.


See also