What Will the Use of Departmental Overhead Rates Generally Result

question 129

Multiple Choice

What will the use of departmental overhead rates generally result in?

• A)The use of a separate cost allocation base for each department in the factory
• B)The use of a single cost allocation base
• C)The use of a single overhead cost pool for the factory
• D)The use of separate cost allocation base for each activity in the factory

---

Definitions:

Complexity-Related

Pertaining to costs or considerations associated with the complexity of manufacturing processes or product designs.

Size-Related

Refers to characteristics or metrics that change in direct proportion to the size of the business or its operations.

Order-Related

Pertaining to costs or activities that are directly associated with processing specific customer orders.

Raw Ingredients

Basic materials or substances used in the initial stages of production or manufacturing processes.