For management accounting purposes, the denominator volume for applying overhead to products may be:
A) budgeted capacity.
B) practical capacity.
C) normal capacity.
D) All of the given answers

Question

Quizplus · Accepted Answer

The denominator volume for applying overhead to products in management accounting can indeed be budgeted capacity, practical capacity, or normal capacity, depending on the costing method and management's decision-making needs.

For Management Accounting Purposes, the Denominator Volume for Applying Overhead