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Total absorption costing (TAC) is a method of Accounting cost which entails the full cost of manufacturing or providing a service. TAC includes not just the costs of materials and labour, but also of all manufacturing overheads (whether ‘fixed’ or ‘variable’).The cost of each cost center can be direct or indirect cost. The direct cost can be easily identified with individual cost centers. whereas the indirect cost can't be easily identified with the cost center. The distribution of overhead among the departments is called apportionment. ==Primary apportionment or distribution of overheads== The selection of the base on which overheads are or should be apportioned depends on the following principles: * Service or use basis: If the benefit obtained by various departments from the overheads can be measured, overheads can be apportioned on that basis. * survey basis: If amount of overhead can't be measured survey basis can be applied. For example, if it can be noted that a supervisor is giving 60% of his time to one department and 40% to another his wages can be apportioned on that basis. * Ability to pay basis: In this case the apportionment may depend on the factors like total sale/profitability. This may not be a fair case always as some departments may have to take most of the burden. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Total absorption costing」の詳細全文を読む スポンサード リンク
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