Which of the Following Is NOT a Limitation of a Plant-Wide

question 114

Multiple Choice

Which of the following is NOT a limitation of a plant-wide overhead rate?

• A)Predetermined rates using budgeted overhead are usually the best estimate of the amount of overhead.
• B)Overhead usage is not strictly linked to the units produced because some products are more complex and diverse than others.
• C)Product diversity may consume overhead activities under differing consumption ratios.
• D)Overhead costs tend to be underallocated to highly complex products.