In the IAS 2 lec for F7 your comment regarding allocating fixed overhead was that when company produces on abnormal high activity then it has recovered fixed over quickly can you explain this statement ( i know that fixed over heads are absorbed on normal activity)
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IAS 2
11y ago#1If you have calculated that, for every item you produce, you recover fixed overheads of €1 based on a production level of 1 million, then you produce 1,250,000, you have over absorbed fixed overheads
Ok?
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