Absorption Costing: Meaning and Criteria | Cost Accounting
In this article we will discuss about:- 1. Meaning of Absorption Costing 2. Growing Importance of Overheads 3. Criteria for Absorption of Overheads 4. Advantages and Limitations of Absorption Costing. Meaning of Absorption Costing: Absorption costing is a principle whereby fixed as well as variable costs are allocated to cost units and total overheads are absorbed according to activity level. [...]