Traditional Overhead Allocations Result in Which of the Following Situations

question 85

Multiple Choice

Traditional overhead allocations result in which of the following situations?

• A)Overhead costs are assigned as period costs to manufacturing operations.
• B)High-volume products are assigned too much overhead,and low-volume products are assigned too little overhead.
• C)Low-volume products are assigned too much,and high-volume products are assigned too little overhead.
• D)The resulting allocations cannot be used for financial reports.

---

Definitions:

Stable Attribution

The assumption that the factors that resulted in a particular outcome will not change.

Successes

are achieved outcomes or accomplishments that meet desired goals or criteria.

Future Outcomes

Considerations or expectations about events or results that will happen in the future, often influencing decision-making and behavior.

Rules

Guiding principles designed to influence behavior or decision-making processes within a particular context.