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What is the impact on the financial statements if the actual production level is very different from the estimated level used to develop the pre-determined
What is the impact on the financial statements if the actual production level is very different from the estimated level used to develop the pre-determined rate? For example, if a company's actual production level far exceeds the level used to develop the pre-determined rate, how does this situation reflect itself in the income statement and balance sheet for the period? What if the production level is far below that of the pre-determined rate? Is this treatment consistent with US GAAP?
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