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Management Accounting > 5. Accounting for Overheads (p119) > Flashcards

5. Accounting for Overheads (p119) Flashcards

1
Q

How is OAR (Overhead Absorption Rate) calculated?

A

OAR =
Budgeted production overhead / Budgeted total of absorption basis

(Absorption basis e.g. product units, labour hours, machine hours etc)

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Management Accounting (18 decks)

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