KellyM Member Dec 9, 2021 #1 Im a newbie in manufacturing industry. In our organization term ‘absorption credits’ is used frequently. Could someone help explain what that entails.
Im a newbie in manufacturing industry. In our organization term ‘absorption credits’ is used frequently. Could someone help explain what that entails.
Larry_Jones Legendary Poster Dec 10, 2021 #2 I've really only encountered the term "absorption credit" related to carbon credits (news articles, etc). If however you're referring to absorption costing follow this link for a pretty good definition Absorption Costing Explained, With Pros and Cons and Example Absorption costing is a managerial accounting method for capturing all costs associated with the manufacture of a particular product. www.investopedia.com
I've really only encountered the term "absorption credit" related to carbon credits (news articles, etc). If however you're referring to absorption costing follow this link for a pretty good definition Absorption Costing Explained, With Pros and Cons and Example Absorption costing is a managerial accounting method for capturing all costs associated with the manufacture of a particular product. www.investopedia.com