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Which of the following is not a method of cost absorption?
- APercentage of direct material cost
- BMachine hour rate
- CLabour hour rate
- DRepeated distribution method
Correct answer: D
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Repeated distribution method
Repeated distribution method is not a method of cost absorption. Absorption costing is a method for accumulating the costs associated with a production process and apportioning them to individual products.
Repeated distribution method is not a method of cost absorption. Absorption costing is a method for accumulating the costs associated with a production process and apportioning them to individual products.