If standard costing is not economically feasible for a company,predetermined overhead rates should not be used.

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Quizplus · Accepted Answer

If standard costing is not economically feasible for a company, predetermined overhead rates may be a viable alternative. However, the company needs to carefully assess its overhead costs and its costing system to ensure that the predetermined rates accurately reflect the actual overhead expenses. Failure to do so can result in distortions in the cost of goods sold and profitability, which can lead to poor decision-making and financial performance.

If Standard Costing Is Not Economically Feasible for a Company,predetermined