【简答题】The following statements refer to overhead absorption using a predetermined hourly rate. Is each statement true or false? True False 1. Under-absorption occurs if budgeted expenditure is less than ...
【单选题】If each professional in a service company is paid on an annual salary basis, why might the firm want to use a predetermined or budgeted rate for direct or professional labor?
A.
A predetermined or budgeted rate is easier to justify to a client who might question a billing rate.
B.
Professional staff persons do not keep accurate records of the jobs on which they work.
C.
Professional staff incurs more client costs, such as travel, lodging, and out-of-town meals, while working on a job.
D.
Year-end bonuses paid to the professional staff are difficult to trace to individual jobs.