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What are the limitations of absorption costing?
Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing. Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing.
What is dispersion of white light?
White is not a colour. It is sensed only by human eye. Actually white is a composite of many colours. Such a composite white light could be spilit up by using a triangular prism. This splitting of composite white light into its constituent colours is called dispersion.
