Predetermined Overhead Rates Are Necessary for How Many of the Following

question 24

Multiple Choice

Predetermined overhead rates are necessary for how many of the following reasons?
.Actual overheads are not incurred evenly over the period
.Product costs need to be calculated promptly for decision- making
.Overhead cannot be traced directly to products because of its indirect nature

• A)0
• B)1
• C)2
• D)3

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Definitions:

NSF Cheque

A cheque that has been returned by a bank as unpaid because the account on which it was drawn did not have sufficient funds, often incur fees.

Bank Service Charges

Fees charged by banks for the use of their services, such as account maintenance fees, transaction fees, and overdraft charges.

Outstanding Cheques

Checks that have been written and recorded by a company but have not yet been cleared or deducted from the bank account balance.