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Why do companies, using job order costing to estimate manufacturing overhead costs, allocate them to individual jobs and products? The actual overhead costs are not
Why do companies, using job order costing to estimate manufacturing overhead costs, allocate them to individual jobs and products?
The actual overhead costs are not determinable.
Manufacturing overhead is a period cost, not a job or product cost.
It enables the company to determine the approximate cost of each job as it gets completed.
It is more accurate to estimate costs.
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