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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Definitions:

Basis in Evidence

Justification or support grounded on facts, data, or specific information rather than conjecture or opinion.

Argumentum ad Baculum

An appeal to force, where an argument is made legitimate or convincing through the use of threat or coercion.

Appeal to Force

A logical fallacy where someone tries to convince others of a point by threatening them either directly or indirectly, rather than by argument.

Fallacy

An error in reasoning or argumentation that leads to a misleading or false conclusion.