PPT - Absorption Costing B Com Notes | EduRev

Cost Accounting

Created by: Universal Academy

B Com : PPT - Absorption Costing B Com Notes | EduRev

 Page 3


Types Of 
Absorptio
n Costing
Job 
Order 
Costin
g
Proce
ss 
Costin
g
ABC 
Costin
g
Page 4


Types Of 
Absorptio
n Costing
Job 
Order 
Costin
g
Proce
ss 
Costin
g
ABC 
Costin
g
Record all costs.
Classify all the costs.
Direct cost are directly linked to the out put 
Allocate the Indirect costs to the service 
departments of a business.
Reallocate costs form support departments to 
production departments.
Calculate an 
overhead recovery 
rate.
Absorb both the 
direct and indirect 
costs (overheads) 
into individual 
products.
Page 5


Types Of 
Absorptio
n Costing
Job 
Order 
Costin
g
Proce
ss 
Costin
g
ABC 
Costin
g
Record all costs.
Classify all the costs.
Direct cost are directly linked to the out put 
Allocate the Indirect costs to the service 
departments of a business.
Reallocate costs form support departments to 
production departments.
Calculate an 
overhead recovery 
rate.
Absorb both the 
direct and indirect 
costs (overheads) 
into individual 
products.
Fixed costs are recovered-fixed costs are incurred in order to make output 
to make output so it is only fair to charge all output with a share of these 
costs.
Ensures that costs are fully recovered.
Encourages costs consciousness.
It is fair in that it uses appropriate methods for each overhead.
Identifies total costs- this is useful where pricing is on a cost plus basis.
Identifies the profitability of different products and services.
Read More

Dynamic Test

Content Category

Related Searches

Summary

,

PPT - Absorption Costing B Com Notes | EduRev

,

Sample Paper

,

Exam

,

ppt

,

Important questions

,

PPT - Absorption Costing B Com Notes | EduRev

,

pdf

,

practice quizzes

,

video lectures

,

PPT - Absorption Costing B Com Notes | EduRev

,

shortcuts and tricks

,

Objective type Questions

,

Viva Questions

,

past year papers

,

Previous Year Questions with Solutions

,

Free

,

Semester Notes

,

study material

,

MCQs

,

mock tests for examination

,

Extra Questions

;