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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Cassandra

2 days ago

I think the correct answer is C. When the absorbed overhead is lower than the actual overhead incurred, it will result in over-absorption of overhead.

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Mona

21 days ago

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

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Martha

26 days ago

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

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Mona

27 days ago

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

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