Best Absorption Costing Assignment Help
What is Absorption Costing?
Absorption Costing Assignment Help and Absorption Costing Assignment Help is one of the most common requirements of Students and Assignment Consultancy is the best place for them to get help on all of thier queries relating to Absorption costing. Absorption Costing is a cost accounting system where all the Cost irrespective of their nature i.e. which is either variable or fixed will be considered in the Cost of production of goods. The Specialty of Absorption Costing is that it takes into account all types of cost for providing either a product or service. We, at Assignment Constancy provide Absorption Costing Assignment Help and Absorption Costing Numerical Help in all the topics to ensure that Students can get the concept of all works in a simpler and understandable manner.
Some of the Advantages to follow Absorption Costing can be identified as follows:
- Absorption costing follows the concept of Over/under absorbed overheads which is very helpful for the management to identify and take measures for underutilized production resources.
- Absorption costing follows the concept of Full Cost Pricing which covers all the cost incurred in the production.
- Absorption costing uses accrual system for accounting which helps in disclosing the true cost incurred in production of a product. Thus, chances of overestimation /underestimation of Value of stock are negligible in Absorption costing.
- Absorption Costing is the most preferable method for preparation of Financial Accounts.
Is there any Reporting Requirements relating to Absorption Costing?
Absorption Costing is a reporting requirement for many authorities. For Instance, It is mandatory as per Generally Accepted Accounting Principles (GAAP) to follow Absorption Costing for External Reporting. International Financial Reporting Standards (IFRS) also makes mandatory to use Absorption Costing for the purpose of Inventory Valuation.
Are there any particular formulae for Solving Absorption Costing Numerical Help?
The formulae for solving Absorption costing numerical help can be summarize as follows:
Total Cost of Production as per Absorption Costing = Total Variable Cost + Total Fixed Cost
Absorption Cost per unit = Variable Cost per unit + Fixed Cost per unit
To Explain Absorption Costing Assignment Help and Absorption Costing Numerical Help, Our expert have illustrated with the help of an example:
Calculations Involved in Absorption Costing:
Cost for Producing 10000 units are as follows:
|Direct Material||$ 300000|
|Direct Labor||$ 200000|
|Variable Overheads||$ 300000|
|Fixed Overheads||$ 200000|
|Manufacturing Cost per unit||100|
Absorption Costing Income Statement for 6000 units:
| Total Number of Units Produced |
|Total Number of units sold||6000|
|Sales ( 6000*$200)||$1200000|
|Less : Cost of Goods Sold|
|Add : Cost of Goods Manufactured (10000*100)||$1000000|
|Total Goods Available for Sale||$ 1000000|
|Less : Closing Inventory ( 4000*100)||$ 400000||$600000|
|Less : Selling and other Administrative Expenses|
|Net Operating Income||$ 300000|
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