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
are the notes to the financial statements part of the financial reporting

INTRA COMPANY ADJUSTMENTS In preparing the consolidated balance sheet, the following items may require adjustments:. 1    Goodwill 2    Unrealized profit on closing inventory 3

Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and dis

The City of Miami must replace a number of its concrete mixer trucks with new trucks. It has received two bids and has evaluated closely the performance characteristics of the seve

ACT presently is all-equity financed. This reflects the stance of the former CEO, a dominant personality who stated repeatedly: "I don't want us to be in thrall to the demands of t

CONVERSION INTO A COMPANY The partners may convert their business and trade in form of a company. This may be due to some of the advantages a company has over a partnership. E.g.

Q. The following selected amounts are available for Vizio Company. Retained earnings (beginning) $1,600 Net loss 300 Cash dividends declared 200 Stock dividends declared 200 What i

The following items represent liabilities on a firm's balance sheet: a. An amount of money owed to a supplier based on the terms 2/20, n/40, for which no note was executed. b. An a

a. Find five comparables for Bank of America (BAC) b. Find the CEO of BAC and five comparable companies, For BAC and all firms, find: c. Market value, alpha and beta (pric

Explain the Transaction Exposure versus Economic Exposure? In brief describe the following term: a) Spot market and forward market.  b) Purchasing Power Parity or PPP.