Overhead is an unavoidable cost in production and service-oriented businesses. Unlike direct costs such as production employee wages and materials that can be applied directly to production or service ...

The generally accepted accounting matching principle requires manufacturing and service businesses to include direct and overhead expenses in product and service costs and, when appropriate, in ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Ebony Howard is a certified public ...

Product costing is a methodology associated with managerial accounting, i.e., accounting intended to serve management in an operational context rather than to measure corporate performance as such, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...

Companies must choose between absorption costing and variable costing in their accounting systems, and there are advantages and disadvantages to either choice. Absorption costing, also known as full ...