When Calculating an Estimated Fixed Production Cost Overhead Allocation Rate

question 34

Multiple Choice

When calculating an estimated fixed production cost overhead allocation rate, accountants choose the

• A) Allocation base to use as the denominator
• B) Allocation base to use as the numerator
• C) Allocation base to use as the rate
• D) Allocation base that minimises total fixed production overhead

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Definitions:

Appropriate Behaviour

Conduct that is considered suitable or proper in a specific context, often conforming to cultural or societal norms.

Results-oriented

Focused on achieving specific outcomes or goals rather than on the process used to achieve those outcomes.

Utilitarian View

A view of ethical behaviour that holds that ethical behaviour delivers the greatest good to the most people.

Moral Principles

Fundamental beliefs about what is right, wrong, ethical, or unethical, guiding individuals' behavior and decision-making.