Q129
Absorption means ________.
A.
charging overheads to cost centres
B.
charging of overheads to cost units
AnswerC.
charging of overheads to cost centres or cost units
D.
allotment of overheads to different departments
Answer: Option B
Solution
Answer: Option B
Solution:
Absorption means charging of overheads to cost units. It means costs is absorbed by the production (or product units )during the period or charging each unit of a product with an equitable share of overhead expenses.