Absorption credits

KellyM

Member
Im a newbie in manufacturing industry. In our organization term ‘absorption credits’ is used frequently. Could someone help explain what that entails.
 
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
www.investopedia.com

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 www.investopedia.com
 

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