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Sir
I found this during self-study …
1) BA > AA -> Under Absorption
2) AA > BA -> Over AbsorptionBA= 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
It 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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