absorption costing meaning

• noun
    Product costing that takes account of overheads
• 
  [Business]
  noun [U]

  (Accounting )

  a way of calculating the cost of a product by including all costs involved in producing it and running the business, such as raw materials, rent, electricity or wages

  SYN FULL COSTING

• 
  [Economics]
  = total absorption costing

  The process of costing products or activities by taking into account the total costs incurred in producing the product or service, however remote. This method of costing ensures that full costs are recovered provided that both the implied full-cost price and forecast sales volumes are achieved. activity-based costing is an attempt to allocate costs on a more sophisticated basis.

  Compare:

  marginal costing.

• Absorption costing is permissible under GAAP.
• "' Total absorption costing "'( TAC ) is a method of Accounting cost which entails the full cost of manufacturing or providing a service.
• "' Efficiency-based absorption costing "'( EBAC ) is the discipline of accounting, which is concerned with establishing methods or techniques to allocate fixed costs to each product or service an organization produces.

• "absorption costing" meaning in Chinese: （完全成本法）：制造产品的成本报告方法，内容通常包括直接材料、直接人工和制造费用。
• "absorption costing" meaning in Japanese: 全部原価計算｛ぜんぶ げんか けいさん｝
• "absorption costing" meaning in Russian: распределение производственных затрат на каждый вид произв...