Overhead absorption rates

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Could someone please tell me the advantages and disadvantages of using a single rate for absorbing overheads compared to a departmental rate? Which one is better? I'm confused! thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Overhead absorption rates

    I think that a departmental rate would be more accurate and informative, but it's a pain in the arse to calculate, and a single rate is easier to calculate!<BR><BR>I think it really depends on the type of scenario to choose which would best suit.<BR><BR>Sorry if that's not too conclusive, but I did it 12mnths ago now, and remembering isn't easy!<BR><BR>James

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