The _________________________ yields the benefits of both the timeliness and convenience of normal costing during the year and the allocation of actual production overhead costs at year-end.

Question

Quizplus · Accepted Answer

The adjusted cost-driver rate approach allows for the use of normal costing during the year, while also allocating actual production overhead costs at year-end. This approach takes into consideration any changes in the cost drivers throughout the year, resulting in more accurate overhead cost allocation. The other options, such as absorption and variable costing, do not provide the same benefits as the adjusted cost-driver rate approach.

The _________________________ Yields the Benefits of Both the Timeliness and Convenience