what are the types of absorption costing 
there are two main types of absorption costing full absorption costing and partial absorption costing the bottom lineabsorption costing is a method of costing that includes all manufacturing costs both fixed and variable in the cost of a product it is also known as full costing or full absorption costing absorption costing is used to determine the cost of goods sold and ending inventory balances on the income statement and balance sheet respectively it is also used to calculate the profit margin on each unit of product and to determine the selling price of the product under absorption costing the fixed manufacturing overhead costs are included in the cost of a product as an indirect cost these costs are not directly traceable to a specific product but are incurred in the process of manufacturing the product the fixed manufacturing overhead costs are allocated to each unit of product based on a predetermined overhead allocation rate which is calculated by dividing the total estimated fixed manufacturing overhead costs by the total number of units that are expected to be produced in addition to the fixed manufacturing overhead costs absorption costing also includes the variable manufacturing costs in the cost of a product these costs are directly traceable to a specific product and include direct materials direct labor and variable overhead 