Absorption Costing Approach or Total Costing

Absorption of Overheads

Absorption of Overheads or Cost Recovered – Definition, Procedure and Formula: Once total production overheads (calculation of overhead absorption rate) of production cost centers are…
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Calculation of Overhead Absorption Rate

Basis (Methods) for Calculating Overhead Absorption Rate: The production overheads calculated for each production department after going through apportionment and allotment are used to calculate…
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Overhead Absorption Rate

Overhead Absorption Rate (OAR’s) or Overhead Recovery – Definition, Uses and Types: Actual amount of overheads cannot be accurately determined at the time of producing…
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Allotment of Reciprocal Services

What is Allotment of Reciprocal Services Method or Re-Apportionment Method or Allocation of Service Department Overheads to Production Department Overheads? Definition and Procedure: A type…
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Allotment of Non Reciprocal Services

What is Allotment of Non-Reciprocal Service Method? Definition and Procedure: A type of cost allocation method (allotment of non-reciprocal service method) in which the usual procedure…
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Cost Center and Cost Unit

Difference between Cost Center and Cost Unit: Cost Center – Definition, Types and Examples: Cost center includes a production or service location, function, activity or…
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Absorption Costing

Definition of Absorption Costing (Total Costing or Total Production Cost): Absorption costing or total costing or total production cost means all costs that are involve…
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