Glossary
Absorption Costing
A method of inventory valuation where both variable and a portion of fixed costs are assigned to each unit of production. Fixed costs are typically allocated based on labor hours, machine hours, or material costs.
Related Glossary Terms
Finance & Compliance
Read Definition Accelerated Commercial Release Operations Support System (ACROSS)
Accelerated Commercial Release Operations Support System also known as ACROSS, A system used by Canada Customs to expedite the release of shipments by allowing electronic data interchange around the clock.
Finance & Compliance
Read Definition ABC Costing
Activity-Based Costing – A costing method that assigns costs to products based on the activities required to produce them, providing a more accurate reflection of the costs incurred.
Finance & Compliance
Read Definition Average Payment Period for Production Materials
The average time taken by a company to pay for materials used in production after receipt. It’s a measure of the payment cycle for production inputs.