The formula for calculating the amount of applied overhead to a product is:
A) Predetermined overhead rate x Estimated units of cost driver
B) Predetermined overhead rate x Actual overhead costs
C) Predetermined overhead rate x Actual units of cost driver
D) Predetermined overhead rate x Estimated overhead costs
C
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Which of the following is a disadvantage of co-production for the organization?
a. possibility of alienating customers who dislike change b. additional cost to train customer contact employees c. decrease in labor costs d. decrease opportunity for service failure
The manipulation of revenues and expenses to achieve a specific outcome is called
a. earnings management. b. the matching rule. c. adjusting entries. d. revenue recognition.
In using the total cost concept of applying the cost-plus approach to product pricing, selling expenses, administrative expenses, and profit are covered in the markup
Indicate whether the statement is true or false
The fill rate is ______.
A. the percentage of customer orders that can be satisfied from inventory in stock B. inversely related to effectiveness of inventory management B. the product of the stock-out rate and rate at which customers place orders D. lower during periods of seasonal demand