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How is a predetermined overhead allocation rate used to allocate overhead to products? O A. By multiplying the estimated rate by the actual quantity of the allocation base, such as direct labor hours, used by each product. B. By waiting until the end of the year to allocate a share of the overhead to each product so that managers can be as accurate as possible about product costing. C. Companies simply take the total overhead for a period and divide it by the number of products manufactured. Each product receives that fraction of the overhead. D. None of the above. QUESTION 11 Accountants provide a company's financial statements, such as cash flow statements, to resource providers (such as bankers and shareholders) to help them make which of the following decisions? A. To determine whether they should allocate resources to the company. B. To determine whether management is being efficient and effective with the resources that they have received. C. Both A and B. D. None of the above. QUESTION 12 Which of the following statements is true concerning short-term business decisions? A. Management should never drop a product or segment if its contribution margin is positive. B. Management should never reject a special pricing order if its contribution margin is positive. C. Both A and B. D.None of the above

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