Question

Terminal costing is the other name of which costing

Answer 1

Terminal costing is another name given for  Absorption Costing

• Full costing is sometimes also called absorption costing.
• Absorption costing is a costing that is done in companies and is and type of managerial accounting method.
• It is used for absorbing all the costs which are associated with manufacturing the product.
• For example, Loading unloading and transshipment costs are terminal costs.

• At the origin and destination loading and unloading, costs are unavoidable and are terminal costs
• Transshipment is the intermediate cost incurred here but can be avoided
• All these costs are known as Absorption Costs or terminal costs