CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 42 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 42
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Over absorption of overhead will always arise when:

Aactual overhead incurred is lower than budgeted overhead

Bactual overhead incurred is lower than absorbed overhead

Cabsorbed overhead is lower than actual overhead incurred

Dabsorbed overhead is higher than budgeted overhead

Show Suggested Answer

Suggested Answer: D

by Joseph at Oct 15, 2022, 05:35 AM

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1 days ago

Hmm, that makes sense too. It's important to understand the relationship between actual and budgeted overhead.

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6 days ago

I disagree, I believe it happens when actual overhead incurred is lower than budgeted overhead.

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7 days ago

I think over absorption of overhead will arise when absorbed overhead is lower than actual overhead incurred.

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