An Estimated Fixed Overhead Allocation Rate

question 79

Multiple Choice

An estimated fixed overhead allocation rate

• A) Is unrealistically large if determined using theoretical capacity
• B) Can be considered an estimated cost of capacity per unit
• C) Is usually based on theoretical capacity
• D) Does not provide information about opportunity costs of unused capacity

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Definitions:

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Csikszentmihalyi

A psychologist best known for his theory of flow, a state in which people are so involved in an activity that nothing else seems to matter.

Flow

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