A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs.
Absorption costing
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.
Allocation base
A document that shows the quantity of each type of direct material required to make a product.
Bill of materials
Unlock this slideshow and over 2 million more with Baamboozle+