Page 9 - P1 Integrated Workbook STUDENT 2018 - Copy
P. 9
Traditional costing
Absorption costing
3.1 The standard cost card
In absorption costing, ALL production costs are included in the standard
cost of production.
$
Direct materials X
Direct labour X
Variable overheads X
Fixed production overheads* X
–––
Absorption cost per unit X
–––
* based on the overhead absorption rate.
5
