Share
Explore BrainMass

Absorption Costing Article

Perform an Internet search using the term, absorption costing and locate an article less than one year old from the results of your search. Please make sure that you do not select an instructor's lecture notes or a class assignment from the results of your search. After reading the article, write a brief paper 3 - 5 paragraphs that summarizes and comments on the article. Please provide the appropriate citation(s). 1 to 1 ½ page paper (3-5 paragraphs) APA style with a cover page and a reference page.

http://smallbusiness.chron.com/calculate-ending-inventory-using-absorption-costing-21598.html

Solution Preview

http://smallbusiness.chron.com/calculate-ending-inventory-using-absorption-costing-21598.html

The article chosen focuses on how businesses can calculate ending inventory using absorption costing. The article highlights the difference between absorption costing and variable costing wherein it details how absorption costing focuses on all direct and indirect costs of production and is suited for external financial reporting. To calculate ending inventory using absorption costing requires 4 different steps beginning with determining the includable costs. When utilizing the absorption accounting method, the employer ...

Solution Summary

This solution analyzes an article about how businesses can calculate ending inventory using absorption costing. It details the steps of the processes and the benefits to the business.

$2.19