Explain the term overhead absorption rate and briefly explain how an entity may select a suitable absorption rate. 

2. Describe two differences and two similarities of budgets and standards. 

3. Explain two benefits of decentralization. 

4. Differentiate sunk costs and opportunity costs. 

5. Give three reasons why the adoption of TQM is particularly important within a Just-in-Time production environment.

Answer rating: 100% (QA)

1 Overhead Absorption Rate Overhead absorption rate is the predetermined rate used to allocate indirect costs overhead to the units produced It is cal... View the full answer