The Predetermined Overhead Rate Is

question 13

Multiple Choice

The predetermined overhead rate is

• A) determined on a moving average basis throughout the year.
• B) not calculated until actual overhead costs are incurred.
• C) determined at the beginning of the year.
• D) determined at the end of the current year.

---

Definitions:

Liable

Being legally responsible for something, typically a debt or a legal obligation.

Constructive Notice

Notice of agency termination that is usually given by publishing an announcement in a newspaper.

Agency Relationship

An agency relationship exists when one party, the agent, is authorized to act on behalf of another, the principal, in business transactions with third parties.

Terminated

Terminated means bringing something to an end or conclusion, often referring to the cessation of employment or the conclusion of agreements.