Absorption costing, which is also known as full absorption costing or full costing, is a method for accumulating fixed and variable costs associated with the production process and apportioning them to individual products.Thus, a product must absorb a broad range of costs.The key costs assigned to products are:bsorption costing, which is also known as full absorption costing or full costing, is a method for accumulating fixed and variable costs associated with the production process and apportioning them to individual products. Thus, a product must absorb a broad range of costs. The key costs assigned to products are:
The Annual Gift Tax Exclusion. The annual gift tax exclusion was indexed for inflation as part of the Tax Relief Act of 1997, so the amount increased in subsequent years to keep pace with the economy. Below is a chart that shows the increases in the annual exclusion from 1997 through 2015.
The $13,000 annual exclusion applies to non-cash gifts, too. For instance, a parent who gives a piece of property to one of their children must pay gift taxes if the fair value of the property exceeds the annual exclusion limit.our parents could be responsible for the gift tax even if the exchange was not an outright gift. For example, the IRS considers a sale of property at a price below fair market value to be a gift when it is made to a relative.