Accounting Multiple Choice Question – 14 March 2023

What will cause under-absorption of fixed production overheads?

Select ONE answer:

1. absorption of overheads is based on actual expenditure and actual activity
2. actual expenditure of overheads is below budget expenditure
3. actual activity is above budgeted activity
4. actual activity is below budgeted activity and actual expenditure is as budgeted

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 4

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

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