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(b) 'The use of predetermined overhead absorption rates based on budgets is preferable to the use of absorption rates calculated from historical data available after

image text in transcribed (b) 'The use of predetermined overhead absorption rates based on budgets is preferable to the use of absorption rates calculated from historical data available after the end of a financial period.' Discuss this statement insofar as it relates to the financial management of a business. ( 4 marks)

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