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	Absorbtion Costing
	... A process that is used is called ABSORTION costing. Absorption costing: This is a costing method where the firm charges all of there manufacturing costs to different allocated cost centers. ... As we can see that this method takes into account both fixed and variable methods as where the marginal costing method excludes fixed costs from its valuation. ... Costs 50,000 _______ Net Profit 75,000 Benefits of ABSORPTION costing: 1. ... If firms were to use the marginal costing method, it would show losses in the earlier periods but show large profits in the latter part of the year. Approximate Word count = 462 Approximate Pages = 1.8 (250 words per page double spaced)

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