Which of the Following Costing Systems Is More Accurate for Overhead

question 33

Multiple Choice

Which of the following costing systems is more accurate for overhead cost allocation and most likely to allow managers the ability to make better pricing decisions?

• A)Departmental overhead allocation rates.
• B)Plantwide overhead rate.
• C)Activity-based costing.
• D)Traditional costing system.
• E)Direct costing.

---

Definitions:

Misrepresentation

The act of providing false or misleading statements that induce someone to enter into a contract.

Legal Misrepresentation

An untrue assertion of reality presented by one individual to another, resulting in the latter being persuaded to enter into an agreement.

Concealing

The act of hiding, covering, or keeping something secret, often with the intent to deceive or defraud.

Termite Infestation

The presence and dwelling of termites in a structure, causing damage and potentially undermining the integrity of the property.