The adjusted allocation approach yields the benefits of ________.
A) timeliness and convenience of normal costing
B) allocating budgeted manufacturing overhead costs at the end of the year
C) write-off to the cost of goods sold approach
D) the proration approach

Question

Quizplus · Accepted Answer

The adjusted allocation approach considers both actual and budgeted manufacturing overhead costs, thus providing the benefits of timeliness and convenience of normal costing. This method is a hybrid of the actual and normal costing methods, allowing for more accurate costing information. Option B is incorrect as the adjusted allocation approach allocates manufacturing overhead costs throughout the year, not just at the end. Option C is incorrect as it refers to a different approach altogether. Option D, proration approach, is not relevant to this question.

The Adjusted Allocation Approach Yields the Benefits of ________