What would be the effect of inaccurate estimation of overhead absorpti – McqOptions

MCQOPTIONS

1.	What would be the effect of inaccurate estimation of overhead absorption rates on aJob?
A.	If the jobs are over-priced, customers will go elsewhere
B.	If the jobs are under-priced, sales revenue will fail to cover costs and/or provide an adequate return
C.	Both A&B
D.	None
Answer» D. None

Discussion

No Comment Found

Related MCQs

Which of the following types of characteristics tend to cause too little overhead costs to be charged to the product using traditional cost allocations?
A retail firm would normally use an inventory account titled?
Regardless of how long it takes to produce and sell inventory, inventory is alwaysconsidered to be a?
In process costing system, the predetermined overhead rate is computed.
Net Purchases equal the invoice amount and?
______________ is introduced as a technique that aims to manage product costs throughout thedesign stage.
In process costing the abnormal loss occurred in a production department is
Lean management has been developed with the intention of reducing ________________ andmaximizing the value of the product or the service to the customer.
In a process costing system, the manufacturing overhead (or factory OH) is usually appliedusing
Assigning overhead using ABC often: