A manufacturer has two general ways to account for fixed manufacturing costs: variable costing and absorption costing. Under variable costing, you do not include fixed manufacturing costs in your ...

Discover how absorption costing is used in GAAP for external reporting. Learn its components and why it's essential for ...

Analyzing costs can help companies make strategic, financially sound decisions. Activity-based costing and absorption costing are two popular accounting methods that companies employ when evaluating ...

The Institute of Management Accountants has issued a new report on developing an effective managerial costing model that builds on the IMA’s Conceptual Framework for Managerial Costing. The IMA is ...

Discover the key differences in inventory accounting between GAAP and IFRS, including valuation methods, write-down reversals ...

Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting and decision making. While ABC isn't allowed for external financial reporting, companies may find ...

Product costing is a methodology associated with managerial accounting, i.e., accounting intended to serve management in an operational context rather than to measure corporate performance as such, ...

Activity-based costing (ABC) is an accounting method that allows businesses to gather data about their operating costs. Costs are assigned to specific activities—planning, engineering, or ...

Argyris, Chris, and Robert S. Kaplan. "Implementing New Knowledge: The Case of Activity-Based Costing." Accounting Horizons 8, no. 3 (September 1994): 83–105.

This instruction identifies specific items of costs that are either allowable or unallowable on sponsored accounts and specifies which allowable costs are treated as direct costs and which are treated ...