Companies which like to use TAC method because it is easy and simple to implement the adjustment of overhead costing. Furthermore, it is aligned with generally accepted accounting principles (GAAP). Besides, TAC method helps companies to calculate the absorption costing for file taxes or other official reports. Moreover, traditional absorption costing takes account of costs of production such as fixed costs of operation, salaries, facility rental and utility bills. It can show the cost per unit for a product line very clearly. This can help company management in determining the products' prices and evaluating
Companies which like to use TAC method because it is easy and simple to implement the adjustment of overhead costing. Furthermore, it is aligned with generally accepted accounting principles (GAAP). Besides, TAC method helps companies to calculate the absorption costing for file taxes or other official reports. Moreover, traditional absorption costing takes account of costs of production such as fixed costs of operation, salaries, facility rental and utility bills. It can show the cost per unit for a product line very clearly. This can help company management in determining the products' prices and evaluating