Departmental Rates Are Appropriate When All the Following Exist Except

question 113

Multiple Choice

Departmental rates are appropriate when all the following exist except:

• A)Not all products pass through the same processes.
• B)Departments are not similar in function.
• C)Departments have dissimilar cost drivers.
• D)All departments have similar cost drivers and cost usage characteristics.
• E)Products consume departmental resources in a significantly different manner.

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