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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Absorption Costing-Over/Under absorption
When calculating the over/under absorption given… the overhead absorption rate, fixed production units and fixed non-production units. Is the fixed non-production units included in computing for the overhead absorbed?
Generally, it is not. Non-production overheads are not directly affected by changes in Inventory levels, it is production overheads that are directly affected.
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