Absorption Costing

Demand that falls outside the limits established by management policy, often due to new customers or changing needs of existing customers.

A cost management system that tracks financial and operational data on resources, activities, drivers, and measures. ABC models are created and maintained within this system.

Activity-Based Costing – A costing method that assigns costs to products based on the activities required to produce them, providing a more accurate reflection of the costs incurred.

Active stock means the inventory that a business uses, refills, and moves around regularly. This stock includes items with a constant turnover rate, are consistently in demand, and require frequent restocking. Active stock differs from passive or inactive stock, including items that move slowly or are rarely used.