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How do you explain cost object?
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Explain the difference between the overhead apportionment and overhead absorption?
If the cost can be tracked towards a cost object, then it is called overhead absorption. If the cost can not be tracked with respect to a specific cost center or cost object, then the entire cost is distributed to all the cost centers, based on the usage ratio. This is called Overhead apportionment. UdhayAnand AVB
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