Why Is Factory Overhead 'Applied' to Products and Jobs by Manufacturing

question 54

Multiple Choice

Why is factory overhead 'applied' to products and jobs by manufacturing companies?

• A)Total actual overhead costs can never be accurately determined for production.
• B)Indirect costs are easy to trace to products and jobs.
• C)It allows managers more timely determination of product costs during the manufacturing process.
• D)It provides a more accurate cost of the job or products being processed.

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