cost absorption

简明释义

成本的归纳,成本的归属

英英释义

例句

1.To enhance cost absorption 成本吸收, the team focused on reducing waste in production.

为了提高< span>成本吸收，团队专注于减少生产中的浪费。

2.The accounting department analyzed how cost absorption 成本吸收 affects overall profitability.

会计部门分析了< span>成本吸收如何影响整体盈利能力。

3.During the economic downturn, many businesses relied on cost absorption 成本吸收 to avoid layoffs.

在经济低迷期间，许多企业依靠< span>成本吸收来避免裁员。

4.By improving efficiency, the factory was able to increase its cost absorption 成本吸收 rate.

通过提高效率，工厂能够提高其< span>成本吸收率。

5.The company implemented a strategy for cost absorption 成本吸收 to maintain competitive pricing.

公司实施了一项< span>成本吸收策略，以维持竞争性定价。

作文

In the world of business, understanding financial principles is crucial for making informed decisions. One such principle is cost absorption, which refers to the process of capturing all costs associated with a product or service, including both fixed and variable expenses. This concept is fundamental in pricing strategies, budgeting, and financial reporting, as it provides a comprehensive view of the actual cost incurred in producing goods or delivering services.To illustrate cost absorption, consider a manufacturing company that produces furniture. The production of each piece involves various costs, such as materials, labor, overhead, and even indirect costs like utilities and rent. By employing cost absorption, the company ensures that every single expense related to the production process is accounted for when determining the price of the finished product. This method allows the company to set prices that not only cover the direct costs but also contribute to the recovery of fixed costs over time.One of the key benefits of cost absorption is that it helps businesses avoid underpricing their products. If a company fails to accurately absorb all costs, it might set a selling price that does not cover its expenses, leading to financial losses. For instance, if our furniture manufacturer neglects to include certain overhead costs in their pricing strategy, they may find themselves in a situation where sales do not generate enough revenue to sustain operations. This could ultimately jeopardize the company's viability.Moreover, cost absorption plays a significant role in inventory valuation. Businesses often have to report their inventory on balance sheets, and the method of cost absorption allows them to reflect the true value of their inventory by considering all costs involved in production. This is particularly important for companies that maintain large inventories, as accurate valuation impacts financial analysis and investment decisions.However, while cost absorption has its advantages, it is not without challenges. One major concern is the allocation of fixed costs. Determining how much of the fixed costs should be absorbed by each unit produced can be complex, especially in industries with fluctuating production volumes. Additionally, relying solely on cost absorption may lead to misleading conclusions about profitability if not complemented by other costing methods, such as variable costing, which focuses only on variable costs.In conclusion, cost absorption is an essential concept in the realm of finance and accounting. It ensures that all costs associated with a product are considered in pricing and financial reporting, thereby aiding businesses in maintaining profitability and sustainability. Understanding and effectively implementing cost absorption can empower companies to make better strategic decisions, optimize pricing strategies, and ultimately enhance their financial performance. As the business landscape continues to evolve, mastering such financial principles will remain vital for long-term success.

成本吸收是商业世界中一个重要的财务原则，指的是捕捉与产品或服务相关的所有成本的过程，包括固定费用和变动费用。这一概念在定价策略、预算编制和财务报告中至关重要，因为它提供了生产商品或提供服务时实际发生的成本的全面视图。