The purpose of the departmental overhead cost report is to
A) control indirect labor costs.
B) control selling expense.
C) determine the efficient use of materials.
D) control overhead costs.

Question

Quizplus · Accepted Answer

The departmental overhead cost report is used to control overhead costs. It provides information on the actual overhead costs incurred and compares them to the budgeted or standard costs. This allows the management to identify any inefficiencies or areas where cost savings can be made. The report also helps in the allocation of overhead costs among various departments or products.

The Purpose of the Departmental Overhead Cost Report Is to