Absorption Costing Complete Details: Meaning, Types & Formula

• BY RASHMI RAJ
• April 21, 2020
• 0 Comments

The cost of inventory at the end of an accounting period is determined by absorption costing. The closing inventory also includes fixed costs, which raises the inventory’s value. However, its limitations, such as absorption costing the risk of overproduction and challenges in overhead allocation, necessitate careful interpretation and complementary use of other costing methods like […]