Absorption costing, also known as full absorption costing or total absorption costing, is a cost accounting method where all overheads of an organization are charged to production by means of absorption.
The basis used for the equitable apportionment of costs between several cost centres when direct assignment is not feasible.
The techniques used in collecting, processing, and presenting financial and quantitative data within an organization to ascertain the cost of cost centres and cost units and the various operations.
The process of determining the costs of the operations, processes, cost centres, and cost units within an organization.
Equitable apportionment refers to the process of sharing common costs between different cost centres in a fair and just manner. This is done using a basis of apportionment that accurately reflects how the costs are incurred by each cost centre.
