Difference between revisions of "Absorption costing"
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==Definitions== | ==Definitions== | ||
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| − | :[[ | + | :[[Absorption costing]]. Method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs. |
According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
:[[Absorption costing]]. The costing method where products "absorb" both fixed and variable manufacturing costs. | :[[Absorption costing]]. The costing method where products "absorb" both fixed and variable manufacturing costs. | ||
[[Category: Accounting]][[Category:Articles]] | [[Category: Accounting]][[Category:Articles]] | ||
Revision as of 15:47, 10 July 2020
Abnormal spoilage is spoilage that would not arise under efficient operating conditions; it is not inherent in a particular production process.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Absorption costing. Method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Absorption costing. The costing method where products "absorb" both fixed and variable manufacturing costs.
