Absorption Costing Definition

Absorption costing is a costing method that includes all manufacturing costs – direct materials, direct labour, and both variable and fixed overhead – as part of the cost of a finished unit of product. This term is synonymous with full costing method.

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Sidra is a accounting teacher in a college and is expert in Managerial accounting . She is also the permanent writer at Accounting Details and is famous for her easy language and simple answers.

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