If the Estimated Cost Driver Level Is Overstated, the

question 138

Multiple Choice

If the estimated cost driver level is overstated, the

• A) predetermined overhead rate will be understated.
• B) predetermined overhead rate will be overstated.
• C) product cost will be overstated.
• D) cost pool will be understated.

---

Definitions:

Middle Managers

Individuals in an organization responsible for managing entry-level employees while reporting to higher-level management, often playing a key role in implementing the company's policies and plans.

Supervisory Managers

Managers who have direct oversight over the work of frontline employees, focusing on monitoring and directing day-to-day operations.

First-line Managers

Managers at the lowest level of an organization who direct day-to-day activities of employees.

Top Management Executives

Senior-level individuals who are responsible for overseeing the strategic direction and operational decisions of an organization.