Abstract
Absorption costing is a technique which charges fixed costs to products or cost units. The fixed overheads are either allocated or apportioned to cost centres. An overhead absorption rate is then used to charge the production cost centre costs to the cost units passing through them. Although the process is arbitrary, the result is that a cost unit is charged with what is deemed to be a fair share of the fixed overhead.
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© 1989 Roger Hussey
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Hussey, R. (1989). Comparison of Marginal with Absorption Costing. In: Cost and Management Accounting. Macmillan Professional Masters. Palgrave, London. https://doi.org/10.1007/978-1-349-19930-3_16
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DOI: https://doi.org/10.1007/978-1-349-19930-3_16
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-44249-4
Online ISBN: 978-1-349-19930-3
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