Which of the following statements about predetermined overhead absorption rates ...
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Which of the following statements about predetermined overhead absorption rates are true?(i) Predetermined absorption rates are based on actual activity levels.(ii) Fixed production overhead costs are absorbed into the cost of production using predetermined absorption rates.(iii) Because absorption rates are predetermined, and therefore constant, companies can avoid under or over recovery of fixed overheads.(iv) Predetermined absorption rates allow companies to record full production costs in advance, prior to discovering actual fixed overhead costs.
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