UNDERABSORBED OVERHEAD Definition

Bookmark and Share

UNDERABSORBED OVERHEAD is where total overhead has not been fully allocated to products sold or services offered. Such a condition can result in an understatement of COGS or cost of sales.

Learn new Accounting Terms

OEI is Outside Equity Interest.

WORKING CAPITAL (WC) is current assets minus current liabilities; also called net current assets or current capital. It measures the margin of protection for current creditors. It reflects the ability to finance current operations.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.