Overhead application refers to
A) the addition of overhead cost to work in process inventory as a product cost.
B) a system of allocating manufacturing cost to products.
C) static budget applications.
D) Both the addition of overhead cost to work in process inventory as a product cost AND a system of allocating manufacturing cost to products.

Question

Quizplus · Accepted Answer

Overhead application refers to the process of adding overhead costs to work in process inventory as a product cost, and also involves allocating manufacturing costs to products. This helps to determine the total cost of a product and can be used for pricing decisions, budgeting, and performance evaluation.

Overhead Application Refers to