The production overhead absorption rates of factories X and Y are calculated using similar methods. However, the
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The production overhead absorption rates of factories X and Y are calculated using similar methods. However, the rate used by factory X is lower than that used by factory Y. Both factories produce the same type of product. You are required to discuss whether or not this can be taken to be a sign that factory X is more efficient than factory Y.
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A lower production overhead rate does not necessarily indicate that factory X is more efficient than ...View the full answer
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