Absorption costing is a managerial accounting method that captures all costs—both fixed and variable—associated with the manufacture of a particular product.

The plant-wide costing method begins with determining the hourly cost of production. If your business produces only a single product, you can directly calculate the per-unit production cost by ...

By focusing on these extremes, the high-low method helps determine the variable cost per unit and the total fixed cost. This provides insight into how expenses fluctuate with production.

Unit cost definition: Variable and fixed costs of production divided by the number of units produced during a specific period of time.

Learn how to use the first in, first out (FIFO) method of cost flow assumption to calculate the cost of goods sold (COGS) for a business.