Multiple Choice Questions on When the actual overhead is less than the absorbed overhead it is ........ for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

When the actual overhead is less than the absorbed overhead it is ........

Costing - Phase (I & II) Overview of Cost and Management Accounting
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    When the actual overhead is less than the absorbed overhead it is ________.

    over absorption

    Correct Answer

    under absorption 

    Incorrect Answer

    equal absorption

    Incorrect Answer

    major absorption

    Incorrect Answer
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    Explanation:

    When the actual overhead is less than the absorbed overhead it is over absorption. If the absorbed overheads at predetermined rates are greater than actual overheads, this is known as OVER-ABSORPTION.

    By: honey kaundal
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