Why Is It Necessary to Estimate the Annual Overhead Costs

question 142

Multiple Choice

Why is it necessary to estimate the annual overhead costs and annual operating activity when calculating the predetermined overhead rate?

• A)Cost benefit analysis indicates that it is too expensive to gather actual costs.
• B)The predetermined overhead rate is only used for internal reporting, and does not need to equal the higher standards required for external reporting.
• C)In order to obtain timely information, companies cannot wait for actual costs to be determined.
• D)All of the above.

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Definitions:

Public Self-Awareness

The awareness of how one is viewed by others and the behavior adjustments made in response to this perception.

Private Self-Awareness

An individual's awareness of their personal thoughts, feelings, and states away from public scrutiny.

Self-Esteem

A person's overall sense of self-worth or personal value, influencing various aspects of their life.

High Standards

The practice of setting superior criteria or expectations, usually in quality or performance.