Definition of absorption costing in English:

Share this entry

absorption costing

noun

[mass noun]
A method of calculating the cost of a product or enterprise by taking into account indirect expenses (overheads) as well as direct costs.
Example sentences
  • The argument for using absorption costing in external reports seems to be based on the matching principle.
  • The ATO opinion was that full absorption costing was necessary for all retail and wholesale businesses.
  • This is not to say that there is no role for absorption costing in business.

For editors and proofreaders

Line breaks: ab¦sorp|tion cost|ing

Share this entry
 

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.