Indicate Whether Each of the Following Statements Is True or False.A

question 44

Essay

Indicate whether each of the following statements is true or false.A predetermined overhead rate should not be used to allocate overhead costs when volume varies during the year.A predetermined overhead rate is calculated using estimated cost and volume data.A predetermined overhead rate is calculated by dividing costs by volume, using a measure of volume such as direct labor hours or direct materials cost.A company may need to allocate overhead costs to products to make pricing decisions for the products.Accounting reports at the end of the fiscal year are based on estimated costs rather than actual costs.

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Definitions:

Expectations

Beliefs or forecasts about future events, which can significantly influence current behavior and decision-making processes.

Desirable Behaviour

Actions or conduct that are considered advantageous, beneficial, or appropriate according to societal, organizational, or personal standards.

Law of Contingent Reinforcement

This law states that the effectiveness of a reward or punishment in influencing future behavior is contingent upon the behavior being directly linked to the reward or punishment.

Desired Behaviour

The specific actions or reactions that are sought after in a particular context, often influenced by goals or expectations.