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Costing

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29 August 2011 What is the difference between allocation,absorption and apportionment? Give with detailes examples.


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CMA Ramesh Krishnan

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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
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