Predetermined overhead rates are generally useful for all of the following purposes, except:
A) product costing.
B) estimating production levels.
C) price determination.
D) inventory valuation.

Question

Quizplus · Accepted Answer

Predetermined overhead rates are used for allocating manufacturing overhead costs to products, which helps in product costing, price determination, and inventory valuation. They are not used for estimating production levels; instead, production levels are often an input in calculating these rates.

Predetermined Overhead Rates Are Generally Useful for All of the Following