【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 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 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.