Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
Full costing system
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.
absorption costing
to calculate the profit easilly
full absorption costing
Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
Full costing system
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.
absorption costing
to calculate the profit easilly
It is old costing technique & it is replaced by activity based costing
An activity-based absorption costing system defines the cost by how many activities a product unit uses. A traditional absorption costing system defines the cost by how much money went into making the product unit.
= http://wiki.answers.com/Q/Marginal_costing_and_absorption_costing_which_is_favourable" =
there is have some differeance . 1.
Absorption costing income statement is that statement in which overheads are charged to units of products based on predetermined blanket rate.
As far as I know there is only an overhead absorption rate and a full absorption rate. The alternative being marginal costing. There are 3 methods of absorption costing. These being Activity, Time and Efficiency but I'm not sure what you are asking exactly.