Using ABC to allocate manufacturing overhead can help managers to:
A: Identify what activities drive overhead costs.
B: Set product prices.
C: Locate inefficiencies in the production process.
D: Do all the above.
A: Identify what activities drive overhead costs.
B: Set product prices.
C: Locate inefficiencies in the production process.
D: Do all the above.
举一反三
- 中国大学MOOC:"Manufacturing overhead consist of indirect labor costs and indirect material costs. ";
- Manufacturing overhead includes all manufacturing costs except direct materials and direct labor.
- 中国大学MOOC: ABC usually relies on volume measures such as direct labor hours or machine hours to allocate all overhead costs to products
- If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.
- All indirect labor costs are treated as variable manufacturing overhead with respect to the volume of output.