Costing
This query is : Resolved
29 August 2011
What is the difference between allocation,absorption and apportionment? Give with detailes examples.
Thanking you
Thanking you
CMA Ramesh Krishnan
(Expert)
29 August 2011
when we allocate all manufacturing costs to products regardless of whether they are fixed or variable. This approach is known as absorption costing/full costing
However, only variable costs are relevant to decision-making. This is known as marginal costing/variable costing
you can download and refer the file which submitted by one of our member. link is
https://www.caclubindia.com/share_files/marginal-costing-vs-absorption-costing--6341.asp
However, only variable costs are relevant to decision-making. This is known as marginal costing/variable costing
you can download and refer the file which submitted by one of our member. link is
https://www.caclubindia.com/share_files/marginal-costing-vs-absorption-costing--6341.asp
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