Absorption of Overheads: Definition, Bases and Methods
In this article we will discuss about the Absorption of Overhead:- 1. Definition Absorption of Overhead 2. Bases of Absorption 3. Method of Absorption of Overheads—Choice of Method. Definition Absorption of Overhead: Overhead absorption is a process by which overheads are included in the total cost of a product. According to Terminology of Cost Accountancy overhead absorption is defined as [...]