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Absorption Costing
This accounting technique combines all costs associated with manufacturing, such as materials directly used, labor directly applied, and all categories of overhead, fixed or variable, in determining a product’s cost.
Unit Product Cost
The total cost (both direct and indirect) assigned to a single unit of product.
Unit Product Cost
The total cost (both direct and indirect) associated with producing one unit of a product, used in pricing and profitability analysis.
Absorption Costing
A method of accounting that incorporates all costs related to manufacturing, including direct materials, direct labor, as well as both variable and fixed overheads, into the product's price.
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