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Why in some questions unabsorbed Portion of production overheads is carried forward to next period instead of charging it to costing P&L?
Answers (3)
Sudha Reddy
Can you give the reference of the question please.
Cost accounting system - Illustration 3 (Timing --- 14.25) in Indigolearn lectures
The overheads are absorbed on the basis of predetermined overhead absorption rate according to the actual production of goods throughout the accounting period or specific period. In some cases if its seasonal industries, under absorbed overhead is carried forward, if the season is spread over the accouting period