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    sweetmal's Avatar
    sweetmal Posts: 1, Reputation: 1
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    #1

    Sep 4, 2009, 10:31 PM
    Predetermine overhead rate
    Why would a company uses a predetermined overhead application rate in producing custom-built things
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Sep 14, 2009, 04:34 AM

    This is the way to go.
    The price has to be reached as quickly as possible.
    It is all part of the budgeting system.
    This is the measure used.
    Subsequently , I am sure the actual overheads are measured and if the original figures were detrimental they are adjusted
    Accordingly in the future.
    In short for time saving it is the convenient way to go.
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