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Why Is Factory Overhead 'Applied' to Products and Jobs by Manufacturing

Question 54

Multiple Choice

Why is factory overhead 'applied' to products and jobs by manufacturing companies?


A) Total actual overhead costs can never be accurately determined for production.
B) Indirect costs are easy to trace to products and jobs.
C) It allows managers more timely determination of product costs during the manufacturing process.
D) It provides a more accurate cost of the job or products being processed.

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