Activity-based costing

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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January 21, 2022 at 8:18 pm #647234
mandana1366
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HELLO
I studied in a system of ABC, there is no under- or over-absorption of overheads the reason that is when compare overhead charged with budget maybe we have under or over absorption of overhead my impression is correct ?
January 22, 2022 at 10:09 am #647257
John Moffat
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I do not understand your question.
If ABC is used when preparing the budgets then it certainly can be the case that the overheads will turn out to be over or under absorbed. However I cannot really imagine this being relevant in Paper PM.
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