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Manufacturing Overhead Costs To Apply Overhead To Jobs

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This document contains two questions about business concepts. The first question asks about why companies use predetermined overhead rates rather than actual costs to apply overhead to jobs. The second question asks about differential cost and revenue analysis, which is an incremental analysis approach to business decision making.

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Manufacturing Overhead Costs To Apply Overhead To Jobs

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Q1.

Briefly explain the need for companies use predetermined overhead rates rather than actual
manufacturing overhead costs to apply overhead to jobs.
Q2. Often the most direct route to a business decision is an incremental analysis. Explain the differential
cost and revenue analysis?

End of Question Paper

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