Which of the Following Statements Is True with Regard to the Departmental

question 48

Multiple Choice

Which of the following statements is true with regard to the departmental overhead rate method?

• A) It is logical to use this method when overhead resources are consumed by various products in substantially the same way throughout multiple departments.
• B) It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.
• C) Each department has the same rate for the same activity pool.
• D) It requires one overhead cost pool and one rate.
• E) It is synonymous with activity-based costing.

---

Definitions:

Wharton's Jelly

A gelatinous substance within the umbilical cord that provides cushioning and support to the blood vessels.

Substance

The fundamental physical matter or material that makes up an object or individual.

Digestive System

A group of organs and glands responsible for the breakdown of food into nutrients, which the body uses for energy, growth, and repair.

Endoderm

One of the three primary germ layers in the early embryo that develops into the interior linings of the digestive system and the respiratory system.