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 ...

Product costing is the process of assigning costs to inventory and production based on the expenses that go into producing or buying inventory. It is an especially important process for manufacturers, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...

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 ...

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