Dictionary definition: absorption costing

Dictionary definition: percentage on direct labour cost
A Dictionary of Accounting;      261 words ...percentage on direct labour cost A basis used in absorption costing for absorbing the production overheads into the cost units produced. The formula used is: (budgeted production overheads × 100)/budgeted direct labour cost.

Dictionary definition: rate per direct labour hour
A Dictionary of Business and Management;      276 words ...rate per direct labour hour A basis used in absorption costing for absorbing the manufacturing overhead into the cost ... formula is: budgeted manufacturing overhead/budgeted direct labour hours. A different approach to cost allocation is ...

Article: Absorption costing for decision-making.
Management Accounting (British);  October 1, 1997 ;     700+ words ... ... primarily a product costing system--a more sophisticated absorption costing system, using a number of absorption bases (cost drivers ... are short term variable costs such as direct material, direct labour and so on. These costs vary in direct proportion to the ...

Dictionary definition: direct labour hour rate
A Dictionary of Accounting;      269 words ...direct labour hour rate ( labour hour rate ... to operators categorized as direct labour . 2. An absorption rate used in absorption costing . It is obtained by the following ... centre overheads)/(budgeted direct labour hours).

Dictionary definition: direct labour cost
A Dictionary of Accounting;      307 words ...direct labour cost ( direct wages ) Expenditure on wages ... operator concerned. A percentage of the direct labour cost is sometimes used as a basis for absorbing production overheads to the cost unit in absorption costing .

Dictionary definition: direct labour hour
A Dictionary of Accounting;      268 words ...direct labour hour An hour spent working on a product ... directly traced to the production. The direct labour hour is sometimes used as a basis for absorbing production overheads to the cost unit in absorption costing .

Article: Hayashi Construction, Inc.: a Business Method of Accounting Using ...
Business Wire;  June 11, 2008 ;     700+ words ... ... invention entitled "Accounting System for Absorption Costing." Absorption costing is an accounting system generally and widely ... external income statement. Representative absorption costing is standard costing under absorption costing ...