DIRECT AND ABSORBENT COSTING
DIRECT COSTING
System
Operation
Evaluate
Inventory
Variable Costs
assigned
Products
Sales cost
Variable manufacturing cost
enough information
Company address
Process
planningstrategic
Production
Operation
Fixed costs
Constants
the capacity
Produce or sell an item
Absorbent costing
Costs
Include
Product
Fixed
Variables
Acknowledged
Method
Valuation
inventory
Purposes
External reports
Apply
Costing
valuation
Production
Distribution
fixed costs
Product
Variable costs
Manufacturing costs
Advantage
Fluctuations
Unit cost
Obtaining
Break-even point
Comparison
units
values
Various periods
have
Better control
sources
utilities
Disadvantages
Incomplete costing
Statement of income
loss caused
Ability
not factory
used
Valuation
inventories
lower
Tradicional información
Decisions
disorients
unit costs
Minors
principle of
accounting
Accounting period
does not reflect the
fixed costs
production level
determined period
generate
generate
Advantage
Valuación
inventories
Production
process and finished
Higher
direct costing
Universal
accepted system
Profesión contable
physical
accounting principle
Accounting period
reflects the
fixed costs
Level of
production
finished
Certain
Fixation
Prices
Determine
Total cost
Disadvantages
balance point
complex
accounting records
both costs
Establishment
optimal combination
Volume
Utility
Supply
Budget
trustworthy
costs
Fixed
Variables
Direction of
the company
Control
Sources
utilities