Under GAAP-based costing, what assumption justifies allocating organization-level manufacturing overhead among products?

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19-10-2017
Mathematics

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Under GAAP-based costing, what assumption justifies allocating organization-level manufacturing overhead among products?

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W0lf93 W0lf93 · Answer 1 · 2017-10-29T23:17:09+01:00

W0lf93 W0lf93

29-10-2017

Because the costs associated with organization-level manufacturing overhead among products are untraceable, it is not possible to specify what product was responsible for what overhead, so GAAP-based costing accounts for the untraceability.

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