Sir
I found this during self-study ...
1) BA > AA -> Under Absorption
2) AA > BA -> Over Absorption
BA= Budgeted Activity AA= Actual Activity
but I am not sure is it always like this or does it require certain condition to be like this such as Actual Overheads = Budgeted Overheads...
also.. it might sound so stupid.., but could you please define definitions Absorbed Overheads simply sir?
I know how to work it out by means of OAR x Actual Activity., but I am having difficulty define it in simple term sir..since English is my second language..
I would be really appreciated your help
Best Regards
Ask the Tutor ACCA MA
Over/Under Absorption
9y ago#1It is not as you have typed.
You need to watch my free lectures on marginal and absorption costing because I. explain it all there (and I am not going to type out all my lectures :-) )
The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
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