Comparisons Can Be Made on Each of the Following Bases

question 185

Multiple Choice

Comparisons can be made on each of the following bases except

• A) industry averages.
• B) intercompany basis.
• C) intracompany basis.
• D) All of these answer choices are basis for comparison.

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Definitions:

Complex

Consisting of many different and connected parts; not simple.

Plantwide Overhead Rate

A single, uniform overhead absorption rate used throughout a manufacturing plant or facility.

Allocation Base

A criterion or standard used to distribute costs among different cost objects, often used in the process of overhead allocation.

Single Cost Pool

A simplified accounting method that aggregates all costs into one category.