Question

What Is Absorption Costing?

Answer 1

Total absorption costing is a method of Accounting cost which entails the full cost of manufacturing or providing a service. TAC includes not just the costs of materials and labour, but also of all manufacturing overheads. The cost of each cost center can be direct or indirect.

Answer 2

Total absorption costing (TAC) is a method of Accounting cost which entails the full cost of manufacturing or providing a service.