Which of the Following Is an Advantage of Developing a Predetermined

question 95

Multiple Choice

Which of the following is an advantage of developing a predetermined overhead application rate?

• A)Long-run fluctuations in volume of output are eliminated.
• B)In a job order system,unit costs can be determined only at the end of the period.
• C)The overhead application rate facilitates assigning overhead costs to the ending inventory of work in process.
• D)Actual overhead will always be less than applied overhead.

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