TAC Costing??

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can someone explain what this is please?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    TAC Costing??

    TAC is when Fixed Production Overheads are absorbed into cost units.<BR><BR>For example if a company produces 10,000units of a certain product, and total fixed overheads total £100,000.<BR><BR>The overhead absorption rate will be 100,000/10,000=£10per unit.<BR><BR>Whereas Mariginal costing treats fixed costs seperatly as a period cost.<BR><BR>Thats how I understand it anyway.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    TAC Costing??

    stupid question, please can someone tell me what TAC stands for. Is it total absorbtion cost?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    TAC Costing??

    Oh so it's absorbtion costing???
  • System
    System Posts: 100,534 🤖 Admin 🤖
    TAC Costing??

    I thought it was 'Traditional' as ABC is considered modern, but could be 'Total'..

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