IMS$\mathrm{.}1$ Intermediate.

a $-$ Explain why predeterinined overhead absorption rates are preferted to overliead absorption rates calculated from facrial information after the end of a financial period.

b$.$ The production overhead alosurption rates of factories $x$ and $Y$ are calculated using sumilar methods. Ifuwever, the rate uaed by factury $x$ 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 raken to be a sign that factory $x$ is more eflacient than factory l$\text{'}.$

$(20)$ manke$)$

CIMA Cost Accomentuig $?$

im$3\mathrm{.}2$ latermediate. Critically consider the purpane of $,$ ith whene production overhead absorption rates