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In Amalgamation, two equal size companies decide to merge and new company is formed with new name while previous two or more companies dissolved.

In Absorption, one large company acquire one or more companies in which small companies dissolved while large company keep continue to work with same old name

In Reconstruction, Existing company restructure itself for proper work in future, normally this happens after company faces major losses or when liabilities of company increases dramatically and company is unable to pay it full but it has good prospects in future.

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Difference between absorption costing AND target 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.


Difference between absorption and marginal costing?

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.


What is the difference between absorption costing and direct costing?

Under absorption costing overheads are allocated to production based on predetermined overhead rates like machine hours, or direct labor hours etc while in direct costing overheads are allocated based on activity performed and relationship with production units.


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.


Difference between activity based costing and absorption costing?

In Activity based costing all overheads are charged to function or department based on activities they perform while in absorption based accounting, overheads are apportioned using some kind of base rate like labor hours or machine hours etc.

Related Questions

Difference between amalgamation and absorption and external reconstruction?

1.Definition amalgamation where two or more companies doing similar business go into liquidation and a new company is formed . Absorption when existing company purchase another existing company is known as absorption.


What is the difference between amalgamation in the nature of purchase of companies and acquisition of companies?

what is the difference between amalgamated company and amalgamation company


What is the difference between letters and alphabat?

The ALPHABET is composed of letters. It's just an amalgamation of them all, there is no particular DIFFERENCE.


What is the difference between amalgamation and demerger?

In amalgamation two or more companies joint together to form a new company but in demerger one company splits itself into two or more new companies to work separately.


What are the difference between actual position and apparent position of the stick?

duhhh


What is the difference between absorption costing and active base costing?

there is have some differeance . 1.


Which of these accurately describes an important difference between congressional Reconstruction and presidential Reconstrction?

Congressional Reconstruction restricted eligibility for participation in the state constitutional conventions in the South.


Difference between absorption costing AND target 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.


What is the difference between assimilation and absorption?

Absorption is where nutrients are moved from the lumen in to the bloodstream or the lymph. here they are transported to tissues where they are assimilated :used for energy, growth etc


What is difference between acquistion and amalgamation?

In acquisition one big company acquire the small company and continues to work with same name but in amalgamation two equal size companies joint together to form a new company and work under new company with new names and previous companies get dissolve completely.


What is the difference between absorption and adsorbtion?

its just a matter of spelling. the "b" is for British English and "p" is used in American English


What is the difference between emission and absorption?

Emission is the process where an object releases energy (such as light) while absorption is the process where an object takes in energy (such as light). In emission, energy is being emitted from the object, whereas in absorption, energy is being absorbed by the object.