6 terms in 3.12
Absorption and activity based costing
Absorption costing builds the full cost of a product by sharing all factory overheads across every unit made. Five key t
Absorption and activity based costing
Absorption and activity based costing
Absorption costing builds the full cost of a product by adding direct costs directly to it and sharing indirect costs (o
Absorption and activity based costing
Absorption and activity based costing
Activity based costing (ABC) groups indirect costs by the activity that causes them. It then charges each product based
Absorption and activity based costing
Absorption and activity based costing
Activity based costing (ABC) assigns direct costs straight to a product. It then groups indirect costs into cost pools a
Absorption and activity based costing
Absorption and activity based costing
Once a business knows the total cost of a product, it adds a profit mark-up to set a selling price. Absorption costing a
Absorption and activity based costing
Absorption and activity based costing
Each costing method produces different inventory values and profit figures. Knowing the strengths and weaknesses of each
Absorption and activity based costing