When fixed overhead is allocated to product the greater the

Reference no: EM13480181

Many accounting writers have emphasized the effect that the allocation of fixed overhead can have on managerial incentives to overproduce. When fixed overhead is allocated to product, the greater the production level, the lower the fixed cost per unit. The lower fixed cost per unit might increase perceived profitability, but is the company really more profitable? Explain

Reference no: EM13480181

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