About the overheads recovery
This query is : Resolved
12 November 2011
why is fixed OH recovered on the basis of normal capacity when actual production is less than or equal to normal production and recovered on actual production basis when actual production is more than normal capacity? and what actually is fixed production and overhead recovery means ? please
Kishanlal Paliwal
(Expert)
14 November 2011
Fixed overheads charged on irrespective of production capacity since these are not governed/monitored by the production capicity.
Absorption of Fixed overheads w.r.t. actual production, which governs by break even point.
Hope, it is cleared to you.
Regards
K.L.Paliwal
Absorption of Fixed overheads w.r.t. actual production, which governs by break even point.
Hope, it is cleared to you.
Regards
K.L.Paliwal
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