A predetermined overhead rate allows managers to make more timely product pricing decisions.

Question

Quizplus · Accepted Answer

A predetermined overhead rate is calculated before the actual costs are incurred, allowing managers to estimate the total production costs and factor them into the product pricing decision. This enables them to make more informed and timely pricing decisions based on the estimated costs, as against waiting for the actual costs to be incurred before determining the product price.

A Predetermined Overhead Rate Allows Managers to Make More Timely