Absorbed cost, Financial Accounting

These are the indirect costs that are related with manufacturing. Absorbed costs involve expenses like insurance, or property taxes for the building in which the production process takes place. When the total manufacturing costs are calculated, the implicit absorbed costs are not taken, but will be taken in a separate account.

On a company's income statement, the cost of goods sold entry does not reveal the absorbed costs and only the actual costs of the material is taken. Incurring insurance and property tax expenses is an essential part of the production process, but these absorbed costs are categorized as separate expenses.

 

 

Posted Date: 7/27/2012 1:34:19 AM | Location : United States







Related Discussions:- Absorbed cost, Assignment Help, Ask Question on Absorbed cost, Get Answer, Expert's Help, Absorbed cost Discussions

Write discussion on Absorbed cost
Your posts are moderated
Related Questions
Mr N. M. is lucky to have a lottery prize of Rs 20 million. He does not have any liability and does not have any claimant over this money. He has the following alternatives: (i)

Emily Jackson, RSC Designs management accountant, is in charge of preparing the master budget for 2013.  She has gathered the following information: 1. Annual profit for the 201

Your firm has been hired to examine the financial statements of Bonanza Development Corp. for possible irregularities.  As part of this task, you reviewed certain land transactions

Harper Co. provided the following information concerning two products: contribution margin per unit- product 12 $46 Contribution margin per unit-product 43 $30. Machine hours requi

zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

Q. Define the 401 Plan? 401(k) Plan - EMPLOYEE BENEFIT PLAN authorized by INTERNAL REVENUE CODE section 401(k), whereby an employer establishes an account for every participati

Let us assume you expect to obtain Rs.2000 yearly for the next three years. The receipt of Rs.2000 is evenly divided. One part that is: Rs.1000 is obtained at the beginning of the

Tony and Suzie are ready to expand Great Adventures even further in 2019. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and