Under absorption of overheads is the difference between total production costs that are budgeted and actual sales revenue.

Name: Under absorption of overheads is the difference between total production costs that are budgeted and actual sales revenue.
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Question

Quizplus · Accepted Answer

Under absorption of overheads refers to the situation where the actual overhead costs incurred are more than the overhead costs allocated or applied to production, not the difference between total production costs budgeted and actual sales revenue.

Under Absorption of Overheads Is the Difference Between Total Production