It does not really matter what sort of overhead application base is used to arrive at an
Question:
"It does not really matter what sort of overhead application base is used to arrive at an overhead application rate. On the one hand, all overhead must be applied to products, and in a job order system a given quantity of overhead will be applied to all products in a batch, so each product will be assigned the same amount of overhead cost, no matter what the base. On the other hand, the application base is only an estimate anyway, and at the end of the year an adjustment must be made to ensure that the amount applied is the same as the actual amount, so whatever the application rate, products will be assigned the actual cost eventually." Discuss the flaws in the reasoning illustrated by the above state- ments.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: