a. Companies sometimes under absorb and over absorb cost leading to high cost, discuss with suitable...

  

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a. Companies sometimes under absorb and over absorb cost leading to high cost, discuss with suitable example ways through which a cold store established in Malamata market can over or under absorb and how this can be rectified by the management accountant. [10 marks] b. Discuss the implications of the measure to be adopted by the cold store in the process of rectification of the over and under absorption. [5 marks] c. In the determination of profits using absorption and marginal costing, a lot of companies tend to prefer marginal costing, using stock valuation as your basis, discuss how absorption costing would present a better profit position that marginal costing, you are to illustrate with you're a suitable example. a. Companies sometimes under absorb and over absorb cost leading to high cost, discuss with suitable example ways through which a cold store established in Malamata market can over or under absorb and how this can be rectified by the management accountant. [10 marks] b. Discuss the implications of the measure to be adopted by the cold store in the process of rectification of the over and under absorption. [5 marks] c. In the determination of profits using absorption and marginal costing, a lot of companies tend to prefer marginal costing, using stock valuation as your basis, discuss how absorption costing would present a better profit position that marginal costing, you are to illustrate with you're a suitable example.

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a ANSWER 1 Over absor ption of Rent Cold stores typically require high rents and if the management accountant fails to adjust the rent absorption rate it can lead to over absor ption of rent This can ... View the full answer