Marketing Overheads in Absorption costing?




Absorption Costing
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Nokuthula, Swaziland

Marketing Overheads in Absorption costing?

Are marketing overheads also direct labour cost? Meaning: should I include them in doing the calculation?
 
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Pakistan, Nasir
 

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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Absorption of Fixed Costs
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