6 1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method Principles of Accounting, Volume 2: Managerial Accounting
If overhead is overestimated, then prices will be too high and that can cause customers to seek their products or services from other companies (most likely their competitors). If overhead is underestimated, then the company may set their prices too low and not earn profits or experience a loss. Understanding your company’s finances is an





