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Unassisted stretching by the client should not be performed when:
Predetermined Overhead Rate
An estimated overhead rate used to assign expected overhead costs to individual units of production, aiding in budgeting and cost control.
Fixed Manufacturing Expenses
Costs that do not vary with the level of production, such as rent, salaries, and equipment depreciation.
Selling and Administrative Expenses
Expenses related to the sale of products or services and the general administration of a business, excluding production costs.
Fixed Manufacturing Overhead
The portion of manufacturing overhead costs that remain constant regardless of the level of production, such as depreciation on factory equipment or salaries of factory supervisors.
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