Standard Cost: Overhead Absorption and the 800 Pound Gorilla

http://www.CostMatters.com Standard costs and overhead absorption have a place in management's toolbox. Both are useful to simplify complexity, fulfill financial reporting requirements, and reduce effort. But they can be misused also. Understanding appropriate usage of these management tools is key to using it appropriately. This, the fifth in a series exploring standard costs, explores how overhead absorption can be misused in performance measurement and performance management. http://www.CostMatters.com