Computation of overheads absorption rate should be based on —

CS Executive · Cost and Management Accounting · PYQS · December 2014
Computation of overheads absorption rate should be based on —
(A) Maximum capacity
(B) Normal capacity
(C) Practical capacity
(D) Idle capacity.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Normal capacity.

Topics: Overhead Costing

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