Over-absorption of factory overheads due to inefficiency of management should be disposed by:

CS Executive · Cost and Management Accounting · PYQS · June 2017
Over-absorption of factory overheads due to inefficiency of management should be disposed by:
(A) Use of supplementary rate
(B) Transfer to costing Profit and Loss account
(C) Carry forward to next year
(D) Transfer to production account

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Overheads

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