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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › absorption costing
Does the term under/over absorption means overestimate or budget?
It 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.
