Question

under absortion costing meaning​

Answer 1

Answer:

Absorption costing refers to a method of costing to account for all the costs of manufacturing. The management uses this method to absorb the costs incurred on a product. The costs include direct costs and indirect costs. Direct costs include materials, labour used in production.

Answer 2

Answer:

Under absorption costing, companies treat all manufacturing costs, including both fixed and variable manufacturing costs, as product costs. ... The product costs (or cost of goods sold) would include direct materials, direct labor and overhead. The period costs would include selling, general and administrative costs.