All of the Following Are Reasons to Assign Estimated Overhead

question 113

Multiple Choice

All of the following are reasons to assign estimated overhead to inventory except:

• A) managers need cost information as soon as possible after production.
• B) managers need to know if production costs are higher than expected as soon as possible.
• C) managers need to use estimated overhead to control earnings.
• D) management reduces the distortions that would come from actual monthly overhead.

---

Definitions:

Fractional Shares

Shares of stock that are less than one full share, which can occur through dividend reinvestment plans or stock splits.

Duty Of Care

A legal obligation to avoid acts or omissions that could likely cause harm to others.

Ordinarily Prudent Person

A legal standard that represents how a typical, reasonable person would act in certain circumstances, usually used to determine negligence.

Pac-Man

A classic arcade video game first released in 1980 featuring a character navigating a maze while eating dots and avoiding ghosts.