Under or over absorption of overheads due to abnormal factors is:

CS Executive · Cost and Management Accounting · PYQS · June 2018
Under or over absorption of overheads due to abnormal factors is:
(A) Charged to costing P & L A/c
(B) Charged to production using supplementary overhead rate
(C) Charged to product cost
(D) Separately shown in the cost sheet

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cost and Management Accounting

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