What does absorption costing mean?

absorption costing meaning in Law Dictionary

The prices training in which all aspects of cost are reported to assist in the absorption price. This ensures all prices are recovered. It is also known as full consumption costing, direct costing, and marginal costing.

absorption costing meaning in Business Dictionary

a way of costing something by which all fixed and variable prices are apportioned to price facilities where they're taken into account using consumption prices. This process means that all sustained prices are recovered from the selling price of a beneficial or service. Also known as full absorption costing. See also direct costing, marginal costing.