The amount of under/over absorbed overhead at the end of the year is carried forward to next year for adjustment when : (A) The normal business cycle is more than one year (B) The project is an old one (C) The output is
CS Executive · Cost and Management Accounting · PYQS · December 2017
The amount of under/over absorbed overhead at the end of the year is carried forward to next year for adjustment when : (A) The normal business cycle is more than one year (B) The project is an old one (C) The output is high in the initial years (D) The overhead control system is lacking in the current year
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Overheads
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