Does the term under/over absorption means overestimate or budget?
Ask the Tutor ACCA MA
absorption costing
5y ago#1It is the difference between the actual overheads incurred and the amount absorbed (which is the actual production multiplies by the absorption rate).
This is all explained in my free lectures on absorption costing. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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