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Question & Answer: Which of the following statements is true?…..

Which of the following statements is true? Absorption costing assigns fixed but not variable manufacturing overhead costs to products. Ideally, the allocation base in a predetermined overhead rate should be a cost driver. O Manufacturing overhead is a direct cost. O Job-order costing systems are used when companies produce many of the same types of products, such as refining commodities

Which of the following statements is true? Absorption costing assigns fixed but not variable manufacturing overhead costs to products. Ideally, the allocation base in a predetermined overhead rate should be a cost driver. Manufacturing overhead is a direct cost. Job-order costing systems are used when companies produce many of the same types of products, such as refining commodities.

Expert Answer

 

Ideally, the allocation base in a predetermined overhead rate should be a cost driver is TRUE
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