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Cost accounting system

Costing

Why in some questions unabsorbed Portion of production overheads is carried forward to next period instead of charging it to costing P&L?


Girinath A

Girinath A

CA Inter

765

18-Sep-21 10:59

630

Answers (3)

Can you give the reference of the question please.


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


Sudha Reddy

Sudha Reddy

CA Final

20K+

22-Sep-21 09:49

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