All of the following are reasons to assign estimated overhead to inventory except:
A) managers need cost information as soon as possible after production.
B) managers need to know if production costs are higher than expected as soon as possible.
C) managers need to use estimated overhead to control earnings.
D) management reduces the distortions that would come from actual monthly overhead.

Question

Quizplus · Accepted Answer

Assigning estimated overhead to inventory is not done to control earnings, but rather to provide timely cost information and reduce the distortions that would come from using actual monthly overhead. Earnings control is typically done through other means, such as managing expenses or adjusting pricing strategies.

All of the Following Are Reasons to Assign Estimated Overhead