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Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
Full costing system
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.
An activity-based absorption costing system defines the cost by how many activities a product unit uses. A traditional absorption costing system defines the cost by how much money went into making the product unit.
to calculate the profit easilly
full absorption costing
Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
Full costing system
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.
An activity-based absorption costing system defines the cost by how many activities a product unit uses. A traditional absorption costing system defines the cost by how much money went into making the product unit.
to calculate the profit easilly
absorption costing
It is old costing technique & it is replaced by activity based costing
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An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
there is have some differeance . 1.
Absorption costing income statement is that statement in which overheads are charged to units of products based on predetermined blanket rate.