ABC METHOD and TRADITIONAL

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December 8, 2017 at 6:40 pm #422066
nodirshoxa
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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…
December 9, 2017 at 7:09 am #422188
John Moffat
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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.
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