Introduction
Absorption costing Cheap Saints Hats , also known as full costing, is a costing technique in which all manufacturing costs, variable and fixed, are considered as costs of production and are used in determining the cost of goods manufactured and inventories. All manufacturing costs are fully absorbed into finished goods.
Significance of Absorption
Significance of absorption costing are as follows:
• Under this technique, both fixed as well as variable costs are allocated to the cost unit.
• Under it Cheap Saints T-Shirts , the overhead costs are allocated to cost unit with the help of the overhead absorption rate.
• Under it, the closing inventories are also valued at both fixed as well as variable cost.
• Under this technique, the periodic profit is affected by a change in the inventory as well as in the volume of sales.
• Under it, the profit becomes a function of production instead of sales.
Advantages & Disadvantages of Absorption Costing
Absorption costing techniques has the following advantages:
• It recognizes the importance of incorporating the fixed cost into the unit cost of production.
• Unit price as determined under absorption costing technique ensures that all costs are included in it.
• It reduces the work-burden of segregation of cost into fixed and variable parts.
• It confirms the accrual concepts by matching the costs with the revenue for a particular period.
• Under this costing technique, the inventory can be valued at the total cost.
• Identification of an effective utilization of production resources is possible by application of absorption costing.
• It helps to calculate gross profit and net profit separately in the income statement for an accounting period.
In spite of having a number of important advantages Cheap Saints Hoodie , absorption costing technique suffers from the following limitations:
• It can be effectively used only at a constant level of output to get a uniform unit cost. Under his technique, unit costs would be different for different levels of output.
• As the unit costs as determined by this technique under different levels of output are different, the process of cost comparison and cost control becomes difficult.
• In absorption costing, a portion of fixed cost is carried forward to the next accounting period as the closing inventory is valued at the total cost which includes a proportionate fixed cost.
• Most of the accountants opine that fixed costs are period costs and they do not produce future benefits of the concerns and hence, should not be included in the unit cost of production.
• Under this costing technique Customized Saints Jerseys , a portion of fixed cost is not charged against the revenue of the period in which they are incurred due to the inclusion of fixed cost in the closing inventory.
• Absorption cost deals with production cost alone and ignores administration, selling and distribution costs.
• It is not helpful for managerial decision making process, such as selection of suitable product mix, temporary shutdown of plant, suspension of production activity if required or not Cheap Saints Jerseys , choice between various alternatives or pricing decision
CANBERRA, April 24 (Xinhua) -- Indian mangoes will be imported into Australia for the first time after protocols were revised to allow the Asian-grown fruits into the local economy.
Indian mangoes will be allowed into Australia so long as they have been treated with irradiation before leaving India, meaning that Australians will be able to enjoy the fruit long after the local season ends.
The Australian Mango Industry Association's Robert Gray said Indian mangoes would be imported when the Australian season had finished, ensuring a constant supply for those who enjoy the golden fruit.
He added that if the Indian-sourced fruit passed all standards testing, the deal would be beneficial for Australians.
"Our position is that Hau'oli Kikaha Saints Jersey , as part of the global trade, if we want access to other countries around the world (to export Australian mangoes), then providing the protocol is safe and not bringing in any pests or diseases, then we're supportive of other countries having access into our market," Gray told the Australian Broadcasting Corporation (ABC) on Monday.
Gray said that the United States has previously imported Indian mangoes with no problems Vonn Bell Saints Jersey , but could not predict the type of volume Australia should expect from March until July - during the Indian mango season.
"While India is a huge mango-growing country, their export business is a bit like ours," he said.
"They will be targeting affluent markets, markets where they can place small quantities of very high-value product."
"India is currently trying to ship 200 to 300 tons of mangoes to the United States a year, and it would be those sorts of volumes I would expect (in Australia)."
Meanwhile Kay Bee Exports chief executive Kaushal Khakhar - who will be sending his mangoes to Australia - said shipments would be made up of two varieties - Alphonso and Kesar.
"Alphonso is slightly tricky but handled well Natrell Jamerson Saints Jersey , it is one of the best varieties in India," he told Fresh Fruit Portal.
"Kesar is the best commercial variety because it has a good price, good flavor, and it handles very well."
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