HI FRNDS JUST WANT 2 KNOW R STANDARD & BUDGETED OVERHEAD SAME IN CONTEXT WITH STANDARD COSTING.
I THINK BUDGETED OH IS USED IN FIXED OH &
STD OH IN VARIABLE OH.
AKSHIT MALHOTRA (C.A Final Student) (1337 Points)
05 November 2011HI FRNDS JUST WANT 2 KNOW R STANDARD & BUDGETED OVERHEAD SAME IN CONTEXT WITH STANDARD COSTING.
I THINK BUDGETED OH IS USED IN FIXED OH &
STD OH IN VARIABLE OH.
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 05 November 2011
FIXED OVERHEADS ARE ALWAYS ABSORBED ON BUDGET CAPACITY THUS BUDGETED IS USED IN FIXED OH,FOLLOWING PRUDENCE CONCEPT
VARIABLE OH ARE ABSORBED ON ACTUAL CAPACITY...THUS STANDARDS ARE BEING SET FOR THAT
REGARDS
SRIPAL JAIN