Absorption

Costing

What is the meaning of Absorption in CMA ? What is Absorption of Overheads? What is under absorption and over Absorption?

Ankitha Rao

CA Final

★ 4K+

10-Nov-21 10:31

613

Answers (2)

Best Answer

Absorption is various expenses included for the purpose of fixing price of a product

lavanya k

CA Final

★ 2K+

10-Nov-21 10:50

Absorption of overhead refers to recovery of overhead that we incurred. Under overhead refers to under recovery (i.e, less recovery than actual overhead) while over recovery refers to over recovery (i.e, received more than overheads incurred)

phanindra raj

CA Final

★ 9K+

10-Nov-21 10:46