Tag: costing
Absorption Costing
DefinitionTotal absorption costing is a method of Accounting cost which entails the full cost of manufacturing or providing a service. TAC includes not just...
Absorbed Account
What is 'Absorbed Account' An account that has been combined or that has merged with another related account. Accounts are often absorbed...
Abnormal Spoilage
What is 'Abnormal Spoilage' The waste or wrecking of inventory beyond what is expected in normal business processes. Abnormal spoilage can be...
Absorbed Cost
What is an absorbed cost and how does it impact a business's bottom line
An absorbed cost is an overhead cost that has been fully...
Absorption Rate
What is the absorption rate
The real estate absorption rate is the rate at which properties are sold in a specific market. It is calculated...
Backflush Costing
What is 'Backflush Costing' Backflush costing is a product costing system generally used in a just-in-time inventory environment. Backflush costing delays the...
Variable Cost
What is a 'Variable Cost' A variable cost is a corporate expense that varies with production output. Variable costs are those costs...
Variable Overhead Spending Variance
What is a Variable Overhead Spending Variance
A variable overhead spending variance is the difference between the actual amount of variable overhead incurred and the...
Variable Overhead
What is a 'Variable Overhead' Variable overhead is the indirect cost of operating a business, which fluctuates with manufacturing activity. For example,...
Target Return
What is a 'Target Return' A target return is a pricing model that prices a business based on what an investor would...