General Studies · Cost Accounting
Which TWO of the following statements about predetermined overhead absorption rates are true? 1. Using a predetermined absorption rate avoids fluctuations in unit costs caused by abnormally high or low overhead expenditure or activity levels. 2. Using a predetermined absorption rate offers the administrative convenience of being able to record full production costs sooner. 3. Using a predetermined absorption rate avoids problems of under/over absorption of overheads because a constant overhead rate is available. 4. Using a predetermined absorption rate avoids the problems associated with choosing an appropriate absorption base.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 12 and 4
- 21 and 4
- 33 and 4
- 41 and 2✓
Correct answer
1 and 2
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost Accounting MCQs →Want more practice questions on Cost Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Cost Accounting