Predetermined overhead rates are used because they are more accurate than using actual costs.

Name: Predetermined overhead rates are used because they are more accurate than using actual costs.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

Predetermined overhead rates are used for convenience and to allow for the timely estimation of costs during the accounting period, not because they are more accurate than actual costs. Actual costs can only be determined after the fact.

Predetermined Overhead Rates Are Used Because They Are More Accurate