The most logical basis for absorption of selling and distribution overheads is : (A) Sales value (B) Cost of goods sold (C) Number of orders (D) Gross profit on sales
CS Executive · Cost and Management Accounting · PYQS · December 2017
The most logical basis for absorption of selling and distribution overheads is : (A) Sales value (B) Cost of goods sold (C) Number of orders (D) Gross profit on sales
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Overheads
Related Questions in this Topic
- 27. Pre-determined factory overhead rate was ₹10 per labour hour. Actual labour hour worked 80,000. Actual factory overh...
- 19. Which of the following is not a method of segregation of semi-variable overhead costs into fixed and variable costs:
- 13. Regular maintenance expenses of factory buildings are:
- 12. Which of the following is not a method of cost absorption ?
- If prime cost is ₹17,80,000 and factory cost is ₹22,25,000, then absorption rate of factory overhead on prime cost is: