Overhead Application For a Single Product Manufacturing Company,all Overhead Must Be Assigned

question 67

Essay

Overhead application
For a single product manufacturing company,all overhead must be assigned to the one product.Since this is the case,why would such a firm not simply assign actual overhead cost to production as it is incurred throughout the year?

---

Definitions:

Customer Service

The assistance and support provided by a company to its customers before, during, and after the purchase of a product or service.

Time-Driven

An approach that bases analysis, activities, or costing on the amount of time required to complete certain tasks or processes.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their consumption of resources.

Preparing Deliveries

The process involved in getting goods ready for shipment to customers, including packaging, labeling, and coordinating logistics.