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Question 1: Why is it necessary to use a predetermined overhead rate?
Group of answer choices
Option A. A timing issue exists between knowing the actual costs and needing to know the unit product cost for managerial decisions, such as product pricing decisions.
Option B. We, as accountants, want job security so we try to make things as complicated as possible.
Option C. Predetermined overhead rates are only used for Activity-Based Costing because cost drivers "drive" the manufacturing overhead.
Option D. all of the above.
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