For purposes of allocating fixed overhead costs to products,managers may view the fixed overhead costs as if they had a variable-cost behaviour pattern.

Question

Quizplus · Accepted Answer

This is true. Managers may use this approach to allocate fixed overhead costs to products if they believe that the costs are related to the volume of production or some other measurable activity level. By treating fixed overhead costs as if they had a variable-cost behaviour pattern, managers can more accurately assign these costs to products based on their usage of the underlying resources.

For Purposes of Allocating Fixed Overhead Costs to Products,managers May