Which of the Following Is Not True

question 63

Multiple Choice

Which of the following is not true?

• A)The departmental overhead method assigns overhead on the basis of volume-related measures.
• B)The departmental overhead rate method is more refined than the plantwide overhead rate method.
• C)Overhead costing accuracy is improved by the use of multiple departmental rates rather than a single overhead rate.
• D)The departmental overhead rate method does not assign overhead on the basis of volume-related measures.
• E)The departmental overhead rate method is more costly to implement than the plantwide overhead rate method.

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Definitions:

Tax Rate

The quantified percentage of an individual’s or corporation’s income that is taken as tax.

Cost of Preferred Stock

The required rate of return on preferred stock, which is typically fixed.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically without voting rights but with a fixed dividend payment.

Issued

Pertains to the act of making securities available for sale to the public or allotting them as part of compensation to employees or other stakeholders.