Will rate

Because fixed factory overhead cost in total does not vary with changes in output:

Multiple Choice

• There is no justification for fixed overhead cost application.

• Generally accepted accounting principles permit companies to use variable rather than absorption (full) costing for external reporting purposes.

• The amount used in the control budget for a period is a "lump-sum" amount.

• There is no way to assign fixed overhead cost to products for product-costing purposes.

• Most companies treat such costs as period, rather than as product costs.

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Because fixed factory overhead cost in total does not vary with changes in output: Multiple Choice There is no justification for fixed overhead cost application. Generally accepted accounting principles permit companies to use variable rather than absorption (full) costing for external reporting purposes. The amount used in the control budget for a period is a "lump-sum" amount. There is no way to assign fixed overhead cost to products for product-costing purposes. Most companies treat such costs as period, rather than as product costs