Exam L4M5 Topic 8 Question 144 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 144
Topic #: 8
Which of the following is a disadvantage of absorption costing method?

Suggested Answer: D Vote an answer

Absorption costing is an approach to allocating overheads in which indirect costs are loaded or absorbed into direct costs related to specific jobs, processes or outputs, using an estimated basis of allocation.
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by Daphne at Jun 04, 2026, 12:54 PM

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