Please register (it's free!) or login to view the document preview.

If you are logged in, your referral link [?] is automatically included below.

EMBED CODE (Copy and Paste)

DOCUMENT DESCRIPTION

The Absorption Costing method, also known as Full Costing and Full Absorption Costing, is a method for accumulating the costs associated with a production process and apportioning them to individual products. It is an inventory valuation and costing model that includes all manufacturing costs:

1. Direct Materials
2. Direct Labor
3. Overhead (Direct & Indirect)

Absorption Costing is often contrasted with Variable Costing or Direct Costing. Under Variable or Direct Costing, the fixed manufacturing overhead costs are not allocated or assigned to (not absorbed by) the products manufactured. Variable costing is often useful for management's decision-making. However, Absorption Costing is a Generally Accepted Accounting Principles (GAAP) requirement. Many people advocate Absorption Costing, because fixed manufacturing costs provide future benefits.

There are types of Absorption Costing Systems:

1. Job Order Costing
2. Process Costing
3. Activity Based Costing (also known as ABC Costing)

Got a question about the product? Email us at [email protected]. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Absorption Costing Method PowerPoint document

ABOUT FLEVYPRO

FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits. Click here to learn more about FlevyPro and its benefits.

[ What is FlevyPro? ]

This is a FlevyPro document.

Top Flevy Author [?]

Absorption Costing Method

Sold by PPT Lab (this author has 25 documents)

Sorry, this document is currently only available to FlevyPro subscribers.

You can join FlevyPro for only $29/month.

This business document is categorized under:
Business Framework Primers

File Type: PowerPoint (ppt)

Tag(s): Absorption Costing

Number of Slides: 14

Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.

Upload date (first version): Mar 2, 2016

FLEVYPRO LIBRARY

Are you a consultant?
FlevyPro is our subscription service for consulting frameworks and business templates.

It is a must-have for any independent consultant or boutique firm. We arm them with the same—if not greater—access to a library of consulting frameworks that global consulting firms have at their disposal. Learn more about our value proposition to consultants here.

RELATED DOCUMENTS FROM THE FLEVYPRO LIBRARY

	Best Practices in Strategic Planning Tag(s): Strategy Execution, Strategy Development, Strategic Planning, Strategic Dialogue		Strategy Map Tag(s): Balanced Scorecard, Strategy Map
	Digital Transformation Strategy (Primer) Tag(s): Digital Transformation, Digital Strategy		Business Model Canvas Tag(s): Business Model Canvas, Business Model, Value Proposition
	Closing the Strategy-to-Performance Gap Tag(s): Strategy Development, Strategy-to-Performance Gap, Strategic Planning, Strategy Execution, Corporate Culture		Six Building Blocks of Digital Transformation Tag(s): Digital Transformation, Digital Strategy, Analytics, Robotic Process Automation, Customer Decision Journey
	Digital Transformation: Value Creation & Analysis Tag(s): Value Creation, Big Data, Mobile, Value Chain Analysis, Digital Transformation		Business Transformation Framework for New CEOs Tag(s): Business Transformation
	Business Model Innovation (BMI) Tag(s): Business Model Innovation, Pricing Strategy, Innovation, Value Proposition, Strategy Development		First 90 Days - Critical Success Strategies Tag(s): Leadership
	Customer Experience Tag(s): Customer Decision Journey, Digital Transformation, Customer Experience		Six Building Blocks of a Customer-Centric Organization Tag(s): Customer Decision Journey, Customer-centric Organization, Operating Model, Customer Lifecycle

SELECT CUSTOMERS

Flevy has provided quality business documents to businesses and organizations of all sizes across the world—in over 60 countries. Below is just a very small sample of our customer base.

VIEW BY

Are you a business professional?
Join Flevy and sell your business documents.

Just as the mobile apps market has helped software developers earn sustainable, passive income, we hope Flevy will do the same for business professionals, like yourself. There's no reason to let your IP collect dust when it can be making you perpetual income.

RECOMMENDED DOCUMENTS FROM THE FLEVY MARKETPLACE

	Cost Drivers Analysis Listed under: Operations Strategy, Marketing, & Sales View more from: LearnPPT Top Flevy Author [?] 18-slide PowerPoint deck. Competitive Cost Analysis is a valuable strategic business framework, as it helps identify potential areas of competitive advantage. Competitive Cost Analysis requires the analysis of relative cost structures of competitors (or potential [read more]	$39.00 Add to Cart View Details
	Activity Based Costing Listed under: Corporate Finance Strategy, Marketing, & Sales View more from: LearnPPT Top Flevy Author [?] 29-slide PowerPoint deck. Activity Based Costing (ABC) analysis is a methodology for assigning costs to those activities that truly drive these costs. It is more accurate than traditional costing methods. It is a valuable technique to know for a number of [read more]	$39.00 Add to Cart View Details
	Activity-Based Cost Management (ABC/M) Listed under: Corporate Finance Strategy, Marketing, & Sales View more from: Gary Cokins 101-slide PowerPoint deck and supporting PDF. Critics have claimed that traditional managerial accounting is at best useless and at worst dysfunctional and misleading. Today's general ledger and budgeted spending systems support departmental and "stovepipe" managerial [read more]	$59.00 Add to Cart View Details
	Lean Champion Black Belt 7 - Optimize Product Costs Listed under: Operations Organization, Change, & HR View more from: Vishnu Rayapeddi Top Flevy Author [?] 67-slide PowerPoint deck. The Lean Champion Black Belt Series are designed and developed specifically for Manager and above roles. These series are at the highest standard among the enterprise series. When a person completes all the 15 modules he / she can be [read more]	$44.00 Add to Cart View Details
	Driver-Based Budgeting and Rolling Financial Forecasts Listed under: Corporate Finance Operations View more from: Gary Cokins 28-slide PowerPoint deck and supporting PDF. There is a shift in emphasis from historical reporting to predictive costing such as capacity-sensitive driver-based rolling financial forecasts, what-if analysis, and marginal cost analysis (e.g., pricing). The annual budgeting [read more]	$49.00 Add to Cart View Details
	Activity-Based Costing (ABC) Rapid Prototyping Toolkit Listed under: Operations View more from: Gary Cokins 19-slide PowerPoint deck and supporting ZIP. The Activity-Based Costing (ABC) Rapid Prototyping Toolkit allows you to implement an ABC system within your organization in weeks, instead of months or years. It includes a proven framework for ABC rapid prototyping, along with [read more]	$179.00 Add to Cart View Details
	Balanced Scorecard Listed under: Operations Strategy, Marketing, & Sales View more from: PPT Lab Top Flevy Author [?] 27-slide PowerPoint deck. This document explains the Balanced Scorecard (BSC) business framework and how to use it as a strategic management system. BSC is a strategy performance management tool--a semi-standard structured report, supported by proven [read more]	$39.00 Add to Cart View Details
	Value-based Pricing Strategy Listed under: Strategy, Marketing, & Sales View more from: PPT Lab Top Flevy Author [?] 47-slide PowerPoint deck. There are 3 common approaches to pricing: Cost-based Pricing, Competitive Pricing, and Value-based Pricing. This presentation discusses A.T. Kearney's approach to Value-based Pricing. Value-based Pricing offers numerous distinct [read more]	$39.00 Add to Cart View Details
	IT Implementation Business Case Listed under: Information Technology View more from: PPT Lab Top Flevy Author [?] 37-slide PowerPoint deck. This is a presentation template laying out the business case for an IT implementation. Templates and diagrams were created for 2 different templates: 1) 3-options of do nothing, upgrade, or buy and 2) 2-options of build or buy. Most of [read more]	$29.00 Add to Cart View Details
	Transformation Maps Listed under: Operations PowerPoint Templates View more from: PPT Lab Top Flevy Author [?] 18-slide PowerPoint deck. This document is a collection of 3-Year, 4-Year, and 5-Year Transformation Map (T-Map) PowerPoint Templates.	$20.00 Add to Cart View Details

What topic are you interested in?

Bain Frameworks? Bain Presentations? Strategy Development?

Something else? Have a look at our compilation of 250+ Business Toolkits, each focused on a specific management topic.

Keyphrase:
Search in...	Document Title Document Description
Filter by author:
Filetype:	PowerPoint Excel Word PDF
Library:	Marketplace FlevyPro [?]

	You are not logged in. Login here.
	About FlevyPro Streams NEW Pricing & Features Library Offers Login

Absorption Costing Method

Receive our Free Primer on Strategy Development & Execution

Get Our FREE Product.