BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -It is also referred to as full costing because it covers all the direct cost related to manufacturing be its raw material cost, labor cost, and any fixed or variable overheads. Total cost = Cost Per Unit * Total Quantity Produced.

Detailed explanation-2: -Cost of production or cost price or production costs can be calculated by adding all direct and indirect costs of a manufacturing unit. Here is the formula of calculating cost of production. Total cost of production= Cost of labor Cost of raw materials ie Overhead costs on manufacturing.

Detailed explanation-3: -The formula for absorption costing can be written as follows: Absorption cost = (Direct labor costs + Direct material costs + Variable manufacturing overhead costs + Fixed manufacturing overhead) / Number of units produced.

Detailed explanation-4: -Variable Cost Formula. To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.