Question: When predetermined overhead rates are based on budgeted activity unit product costs fluctuate depending upon budgeted level of activity the overhead cost per unit decreases
When predetermined overhead rates are based on budgeted activity
unit product costs fluctuate depending upon budgeted level of activity
the overhead cost per unit decreases as budgeted output decreases
units that are sold absorb the costs of any unused capacity.
products are charged for resources they don't use
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