The Cost-Allocation Base Used for the Fixed Overhead Rate Should

Multiple Choice

The cost-allocation base used for the fixed overhead rate should be ________.

A) underestimated due to the conservatism principle
B) overestimated due to the conservatism principle
C) the most plausible and reliable measure available of the cause and effect relationship between overhead costs and production volume
D) the most plausible and reliable measure available of the relationship between overhead costs and sales