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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Definitions:

Dependent Variable

A variable that changes as a consequence of a change in some other (independent) variable; the “effect” or outcome.

Interest Rate

The interest rate is the percentage charged on the total amount borrowed or earned, representing the cost of borrowing money or the reward for saving.

Investment

The act of allocating resources, usually financial, into something with the expectation of generating income or profit.

Tabular Presentation

A method of presenting information or data in rows and columns, making it easier to understand and analyze.