Tag Archives | Over-Absorption and Under-Absorption

Over-Absorption and Under-Absorption of Overheads

In this article we will discuss about ‘Over-Absorption and Under-Absorption of Overheads’:- 1. Definition of Over-Absorption and Under-Absorption of Overheads 2. Treatment of Over-absorption or Under-absorption in Cost Accounts. Definition of Over-Absorption and Under-Absorption of Overheads: Usually overheads are absorbed on the basis of predetermined rates. Since predetermined overhead rates are based on budgeted overheads […]

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