Marketing Overheads in Absorption costing?

Absorption Costing
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Nokuthula
Are marketing overheads also direct labour cost? Meaning: should I include them in doing the calculation? (...) Read more? Sign up for free

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Include Marketing Overhead in Full Costing?

No, the reason is that marketing overheads are indirect costs or non production overheads so you won't include this in doing the calculation of absorption costing. In absorption or full costing method you should only include production costs.

 

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