Multiple (Departmental) Manufacturing Overhead Rates Are Considered Preferable to a Single

question 79

Multiple Choice

Multiple (departmental) manufacturing overhead rates are considered preferable to a single (plantwide) overhead rate when: (CMA adapted)

• A) Manufacturing is limited to a single product flowing through identical departments in a fixed sequence.
• B) Various products are manufactured that do not pass through the same departments or use the same manufacturing techniques.
• C) Individual cost drivers cannot accurately be determined with respect to cause-and-effect relationships.
• D) The single or plantwide rate is related to several identified cost drivers.

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Definitions:

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