A common absorption rate used throughout a factory for all jobs and units of output irrespective of the department in which they were produced is called —

CS Executive · Cost and Management Accounting · PYQS · December 2016
A common absorption rate used throughout a factory for all jobs and units of output irrespective of the department in which they were produced is called —
(A) Machine hour rate
(B) Department absorption rate
(C) Overall absorption rate
(D) Blanket absorption rate.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost Accounting

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