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Simply: allocation of cost to a cost centre
http://www.answers.com/topic/cost-absorption:
Allocation of cost to a product, process, or department using a rational allocation basis. For example, rent expense can be allocated to a department based on square footage.
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What is cost absorption in cost accounting and work examples?
A managerial accounting cost method of expensing all costs associated with Manufacturing a particular product
What is an absorption costing?
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
How is cost accounting impact in financial accounting?
Cost accounting mainly becomes a decision making issue. However, it does impact financial accounting with regards to the inventory account on the balance sheet statement and cost of goods sold on the income statement. It is used in manufacturing firms in order to cost there inventory which is not as easy as a retail firm that really justs costs products at the purchase price. While your countries accounting board regulates the method (generally absorption costing) there is significant debate in accounting theory as to which method (variable or absorption) is a better costing method.
Difference between marginal cost accounting statements and absorption cost accounting statement?
marginal costing considers only direct) materials,labour,expenses and variable factory overheads excluding fixed factory overheads but absorption considers (direct) materials ,labour,expenses,variable and fixed factory overheads.
What is single absorption rate in cost accounting?
Single absorption rate is overall rate to allocate overheads to units of product based on some other base like machine hours or direct labor hours etc.
Why cost accounting is used instead of financial accounting?
cost accounting is used instead of financial accounting because cost accounting is used to determine the cost of the good produced
What is the Cost and cost accounting also give out objectives of cost accounting?
answer
How does management accounting differ from cost accounting?
Management accounting includes both financial and cost accounting, tax planning and tax accounting. Cost accounting, on the other hand, does not include financial accounting, tax planning and tax accounting.
Compare and contrast between cost accounting and financial accounting?
compare and contrast cost accounting and financial accounting
Cost accounting and management accounting?
Cost accounting is a subset of management accounting, although the two are used interchangeably.
What are the different fields of accountung?
1- Cost Accounting 2 - Financial Accounting 3 - Management Accounting
What are the Classifications of cost accounting?
what are the various classification of cost accounting?
