Which of the Following Might Be a Reason That Allocating

question 31

Multiple Choice

Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products?

• A)The general overhead cost pool is not allocated to products under activity-based costing.
• B)The product mix includes products that are not similar in material and labor.
• C)The product mix has all products that are similar in makeup of materials and labor.
• D)The general overhead cost pool is allocated to products under activity-based costing.

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