Which of the Following Approaches Allocates Overhead by Multiplying a Predetermined

question 89

Multiple Choice

Which of the following approaches allocates overhead by multiplying a predetermined rate × standard activity?

• A) Actual costing.
• B) Normal costing.
• C) Regression costing.
• D) Standard costing.

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Definitions:

Labor

The effort by workers to produce goods or provide services in exchange for payment.

Capital

Assets used in the production of goods and services, often categorized as physical (like machinery) or financial (like money at hand).

Average Total Cost

The total cost of production divided by the quantity of output produced, including both fixed and variable costs.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.