Câu hỏi
Which of the following statements about predetermined overhead absorption rates are true? (1) Using a predetermined absorption rate avoids fluctuations in unit costs caused by abnormally high or low overhead expenditure or activity levels. (2) Using a predetermined absorption rate offers the administrative convenience of being able to record full production costs sooner. (3) Using a predetermined absorption rate avoids problems of underlover absorption of overheads because a constant overhead rate is available. (1) and (3) only (2) and (3) only (1) and (2)only (1), (2) and (3)
Giải pháp
4.3
(302 Phiếu)
Vĩnh Thắng
thầy · Hướng dẫn 5 năm
Trả lời
(1), (2) and (3)
Giải thích
All three statements are true regarding the use of predetermined overhead absorption rates. Statement (1) is accurate because using a predetermined absorption rate can indeed help stabilize unit costs by reducing the impact of abnormal fluctuations in overhead expenditure or activity levels. Statement (2) is also true as it provides administrative convenience by allowing for the recording of full production costs sooner, which can aid in more timely decision-making. Statement (3) is correct as well, as it helps avoid issues of under or over absorption of overheads by providing a constant overhead rate throughout the period. Therefore, all three statements correctly describe advantages of using a predetermined overhead absorption rate.