Under-absorption of overheads occurs when the overhead allocated to production or jobs is less than the actual overhead incurred during the period. This means products may have been costed lower than the true indirect cost burden. At period end, the difference normally needs adjustment to ensure accurate costing and profit reporting.
Utilization Rate
Utilization rate measures how much of available capacity, time, or resources is actually being used. For example, it may show how much staff time...
Utility Expense
Utility expense is the cost incurred for essential services such as electricity, water, gas, internet, and similar operating utilities used in the business. These...
Usury
Usury refers to charging excessively high or unfair interest on loans beyond what is legally or ethically acceptable. Many jurisdictions regulate or prohibit usurious...
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