Which of the Following Is Not a Reason to Use

Multiple Choice

Which of the following is not a reason to use predetermined overhead rates?

A) to overcome the problems of assigning overhead to diverse types of products
B) to compensate for fluctuations in monthly overhead costs
C) to provide a means for assigning overhead during the period rather than at the end of the period
D) to smooth out the amount of overhead cost assigned to products when monthly production activity differs