ABSORPTION COSTING Definition

Bookmark and Share

ABSORPTION COSTING is the method under which all manufacturing costs, both variable and fixed, are treated as product costs with non-manufacturing costs, e.g. selling and administrative expenses, being treated as period costs.

Learn new Accounting Terms

NSF CHECK see NOT SUFFICIENT FUNDS (NSF) CHECK.

PRODUCTIVE ACTIVITY usually is defined as including activities that have economic value in the marketplace. A more contemporary definition of productive activity includes any activity that produces a valued good or service, even if it is not actually paid for.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.