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Can non-production overhead be absorbed (in period costs) in external reporting? After that we will do same under-over absorption like we do for Production Overhead (in Product costs).
So can these be absorbed, am I right?Only overheads related to production can be absorbed into the cost of production and inventory. That holds for both internal and external reporting.
I have studied that non production overhead cost can be absorbed also. So what is use of absorbing if not used in any of reporting? Do we absorb them for cost accounting?
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