The Effect of Uniform Production Levels on Unit Production Costs

question 130

Multiple Choice

The effect of uniform production levels on unit production costs can be achieved

• A)by using a factory overhead rate based on long-run normal production activity level.
• B)by using a factory overhead rate based on selling price.
• C)by closing the factory overhead at the end of the accounting period.
• D)by using a factory overhead rate based on different production levels for each year.