In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

Name: In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Departmental overhead rates and activity-based costing only affect how overhead costs are allocated to specific jobs or products in job-order costing. They do not affect the actual amount of overhead incurred by the company.

In Job-Order Costing, Departmental Overhead Rates and Activity-Based Costing Affect