Which of the Following Statements Is Not Correct Concerning Multiple

question 175

Multiple Choice

Which of the following statements is not correct concerning multiple overhead rate systems?

• A) A multiple overhead rate system is more complex than a system based on a single plantwide overhead rate.
• B) A multiple overhead rate system is usually more accurate than a system based on a single plantwide overhead rate.
• C) A company may choose to create a separate overhead rate for each of its production departments.
• D) In departments that are relatively labor-intensive, their overhead costs should be applied to jobs based on machine-hours rather than on direct labor-hours.

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