What Is the Rationale Behind Applying Overhead at an Estimated

question 11

Multiple Choice

What is the rationale behind applying overhead at an estimated rate rather than an actual rate such as direct labour or materials?

• A)Accounting rules permit this approach.
• B)Waiting to the end of an accounting period to allocate costs is inefficient.
• C)Overhead costs fluctuate widely month to month and these fluctuations can distort profitability.
• D)Overhead costs are incurred evenly month to month as they include mostly fixed costs.

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Definitions:

Genocide

The calculated and methodical elimination of a community distinguished by its national, racial, political or cultural distinctions.

Tutsi Minority

An ethnic group that forms a minority of the population in Rwanda and Burundi, historically playing a significant role in the social and political dynamics of these countries.

Hutu Majority

The ethnic group that constitutes the majority of the population in Rwanda, historically involved in conflict with the Tutsi minority.

Prejudiced Discriminator

An individual who acts out their prejudices and biases towards others, often based on race, sexuality, gender, or any other characteristic, resulting in discriminatory behavior.