Make disquisition
Chapter 3—Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing
LEARNING OBJECTIVES
LO 1
Why and how are overhead costs allocated to products and services?
LO 2
What causes underapplied or overapplied above, and how is it treated at the cessation of a period?
LO 3
What press close together do different capacity measures have in successi~ setting predetermined overhead rates?
LO 4
How are the recondite-low method and least squares regression analysis used in analyzing mixed costs?
LO 5
How perform managers use flexible budgets to fixed beforehand predetermined overhead rates?
LO 6
How bestow absorption and variable costing differ?
LO 7
How act changes in sales or production levels put on net income computed under
absorption and vacillating costing?
QUESTION GRID
True/False
Difficulty Level
Learning Objectives
Easy
Moderate
Difficult
LO 1
LO 2
LO 3
LO 4
LO 5
LO 6
LO 7
1
X
x
2
X
x
3
X
x
4
X
x
5
X
x
6
X
x
7
X
x
8
X
x
9
X
x
10
X
x
11
X
x
12
X
x
13
X
x
14
X
x
15
X
x
16
X
x
17
X
x
18
X
x
19
X
x
20
X
x
21
x
x
22
x
x
23
x
x
24
x
x
25
x
x
26
x
x
27
x
x
Difficulty Level
Learning Objectives
Easy
Moderate
Difficult
LO 1
LO 2
LO 3
LO 4
LO 5
LO 6
LO 7
28
x
x
29
x
x...
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