. . . . . . . . is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.
A. Over absorption of overheads
B. Under absorption of overheads
C. Overheads absorption
D. None of these
Answer: Option B
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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