logo share us

Absorption Costing

   

Definition: Absorption Costing is an inventory valuation and costing model that includes ALL manufacturing costs (like direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a unit of product.
As a result, under absorption costing, fixed overhead is a product cost until the products are sold.


   
   
💡

Learn more about Absorption Costing.



More on financial management: Accounts Receivable Factoring, Credit Management, Credit Rating, Customer Profitability Analysis, Debt Settlement, more on financial management...

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.



MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.


add us to your desktop

Add MBA Brief to your desktop / iPad

   

© 2024 MBA Brief - Last updated: 2-3-2024  -  Privacy   |   Terms