Which of the Following Are Drawbacks to Applying Actual Overhead

question 1

Multiple Choice

Which of the following are drawbacks to applying actual overhead to production?

• A)A delay occurs in assigning costs to jobs or products.
• B)Fluctuations in quantities produced during a period could cause varying per-unit charges for fixed overhead.
• C)Seasonality of overhead costs may cause distortions in job or product costs.
• D)all answers are correct.

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Definitions:

Total Revenue

The overall income generated by a business from its sales activities, calculated by multiplying the price of goods by the quantity sold.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for a product, unlike a price-discriminating monopolist who charges different prices.

Marginal Revenue

The additional income earned by selling one more unit of a product or service, reflecting the incremental increase in total revenue.

Nondiscriminating Profit-maximizing Monopolist

A monopolist who charges a uniform price for all units of output sold to all customers, maximizing profit without price discrimination.