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

This question belongs to Commerce Costing
Costing
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When the actual overhead is less than the absorbed overhead it is ________.

Answer & Solution
Correct Answer: Option A
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.
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Ramgopal Bera
Ramgopal Bera 8 years ago
It will be over absorption
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