Q235
Which of the following is not a method of cost absorption?
A.
Percentage of direct material cost
B.
Machine hour rate
C.
Labour hour rate
D.
Repeated distribution method
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Repeated distribution method is not a method of cost absorption. Absorption costing is a method for accumulating the costs associated with a production process and apportioning them to individual products.