cost absorption
21direct materials cost — Expenditure on direct materials. It is one of the cost classifications that make up the prime cost of a cost unit and is ascertained by collecting together the quantities of each material used on each product by means of materials requisitions… …
22service cost centre — indirect cost centre; = service department; = support cost centre A cost centre to which costs are allocated or apportioned in absorption costing; though the service cost centre is necessary to carry out the production process, it is incidental… …
23direct labour cost — direct wages Expenditure on wages paid to those operators who are directly concerned with the production of a product, service, or cost unit It is one of the cost classifications making up the direct cost of a cost unit; it is quantified as the… …
24direct materials cost — Expenditure on direct materials It is one of the cost classifications that make up the direct cost of a cost unit and is ascertained by collecting together the quantities of each material used on each product by means of materials requisitions… …
25service cost centre — indirect cost centre; service department; support cost centre A cost centre to which costs are allocated or apportioned in absorption costing; though the service cost centre is necessary to carry out the production process, it is incidental to it …
26percentage on direct labour cost — A basis used in absorption costing for absorbing the production overheads into the cost units produced. The formula used is: (budgeted production overheads × 100)/budgeted direct labour cost …
27percentage on direct material cost — A basis used in absorption costing for absorbing the manufacturing overhead into the cost units produced. The formula used is: (budgeted manufacturing overhead × 100)/budgeted direct material cost …
28percentage on prime cost — A basis used in absorption costing for absorbing the manufacturing overhead into the cost units produced. The formula used is: (budgeted manufacturing overhead × 100)/budgeted prime cost …
29full cost pricing — An approach to setting selling prices that attempts to ensure that the price of a good or service is based on all the costs incurred in its supply, including overheads It usually involves an absorption approach to the costing of units. Compare… …
30overhead cost absorbed — overhead cost recovered The actual production for a period multiplied by the overhead absorption rate budgeted for that period …
