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Cost Accounting

Thursday, March 25, 2010. Limitations of Absorption Costing. The following are the criticisms against absorption costing. You might have observed that in absorption costing, a portion of fixed cost is carried over to the subsequent accounting period as part of closing stock. This is an unsound practice because costs pertaining to a period should not be allowed to be vitiated by the inclusion of costs pertaining to the previous period and vice versa. Marginal cost is the cost management technique for the.
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Cost Accounting

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Thursday, March 25, 2010. Limitations of Absorption Costing. The following are the criticisms against absorption costing. You might have observed that in absorption costing, a portion of fixed cost is carried over to the subsequent accounting period as part of closing stock. This is an unsound practice because costs pertaining to a period should not be allowed to be vitiated by the inclusion of costs pertaining to the previous period and vice versa. Marginal cost is the cost management technique for the.

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This web page learncostaccounting.blogspot.com states the following, "Thursday, March 25, 2010." We saw that the webpage said " The following are the criticisms against absorption costing." It also said " You might have observed that in absorption costing, a portion of fixed cost is carried over to the subsequent accounting period as part of closing stock. This is an unsound practice because costs pertaining to a period should not be allowed to be vitiated by the inclusion of costs pertaining to the previous period and vice versa. Marginal cost is the cost management technique for the."

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