Which of the Following Are Advantages of Using the Plantwide

question 83

Multiple Choice

Which of the following are advantages of using the plantwide overhead rate method?

• A)The use of cost pools is considerably more accurate than other overhead allocations.
• B)The necessary information is readily available.
• C)It is more accurate than traditional overhead allocations.
• D)Each department has its own overhead rate and its own allocation base.
• E)It takes into account that when products differ in batch size and complexity,they usually consume different amounts of overhead resources.

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Definitions:

Non-recourse Loan

A type of loan where the lender's ability to recoup losses is limited to seizing the collateral, with no right to pursue the borrower's other assets if the collateral’s value is insufficient.

Principal

An amount of money that is loaned or invested, excluding any interest or profit earned on it.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreement.

Accounts Payable

The amount a company owes to suppliers for goods and services purchased with credit.