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

CONSIGNMENT STOCK is vendor supplied stock that is only paid for when it is used. Consignment stock should change nothing except cash flow. Holding any more stock than is necessary is always inefficient whether it is consignment stock or not.

R&D see RESEARCH & DEVELOPMENT.

Suggest a Term

Enter Search Term

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