Comparing Absorption Costing To Marginal Costing

Tweet Marginal Costing Versus Absorption Costing The MAIN DIFFERENCE is the treatment of FIXED COSTS. This treatment can produce different profit figures.The two methods of costing produce different profit levels dependent upon the net change in the level of stock during the period.This is due to the VALUATION of the net change in stock during […]

Explain what is over/(under) absorption Of Overheads

Tweet In earlier articles, we discussed about absorption costing, its advantages and disadvantages and its various methodologies. This article discuss about the over or under absorption of overheads:- Over or Under Absorbed in Absorption Costing Note that as long as planned level of activity and the actual level of activity is not the same there […]

What Is Absorption Costing, Its Advantages And Disadvantages

Tweet What Is Absorption Costing, Its Advantages And Disadvantages This article deals with the basic understanding of what is absorption costing and its pros and cons. What is Absorption Costing? It is a costing technique where all normal costs whether it is variable or fixed costs are charged to cost units produced. Unlike marginal costing […]