Applying overhead to products means:

Question

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Applying overhead to products means assigning the overhead on a basis that closely relates it to the work performed. This is often done through cost allocation methods such as activity-based costing, where overhead costs are allocated to specific cost pools based on the activities that drive those costs. The cost pools are then assigned to individual products based on the amount of the activity they consume. This results in a more accurate and fair allocation of overhead costs to products.

Applying Overhead to Products Means