Day: August 3, 2022

What is the reason for overhead absorption in a manufacturing business?

Select ONE answer:

1. to enable overheads to be apportioned to cost centres
2. to control overhead expenditure
3. to establish costs per unit of product
4. to establish the net realisable value of stock

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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