Hello, sir or ma'am... I got question, How are we gonna find Overhead Absorbtion Rate if there is no labour hours or machine hours...? for example in delivery organizations? I got problem of solving it where I don't find any labour or machine hours...
Ask the Tutor ACCA PM
ABC METHOD and TRADITIONAL
There is no rule about what has to be used for absorption - it was whatever the business regards as most sensible.
For delivery organisations maybe km's driven, but it depends on the information in the particular question.
Sign into reply to this topic.
