Which of the Following Is NOT a Limitation of a Plantwide

question 46

Multiple Choice

Which of the following is NOT a limitation of a plantwide overhead rate?

• A)Product diversity may consume overhead activities under differing consumption ratios.
• B)Overhead usage is not strictly linked to the units produced because some products are more complex and diverse than others.
• C)Predetermined rates using budgeted overhead are usually the best estimate of the amount of overhead.
• D)Overhead costs tend to be underallocated to highly complex products.

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Definitions:

Recency Effect

A memory bias where the most recently presented information is remembered better than older information.

TOT Effect

The Tip-of-the-Tongue phenomenon where a person cannot fully recall a word or name, but has partial recall and a sense of imminent retrieval.

Flashbulb Memories

Highly detailed, exceptionally vivid 'snapshot' memories of the moment and circumstances in which a piece of shocking news was heard.

Emotional Impact

describes the significant affective response or effect that an event, experience, or piece of information has on an individual's mood, feelings, or emotional state.