Predetermined overhead rates are generally useful for all of the following purposes, except:
A) estimating production levels.
B) product costing.
C) price determination.
D) inventory valuation.

Question

Quizplus · Accepted Answer

Predetermined overhead rates are calculated based on expected production levels and are used for product costing, price determination, and inventory valuation. They are not useful for estimating production levels, as they are calculated based on planned production levels.

Predetermined Overhead Rates Are Generally Useful for All of the Following