Which of the Following Is a Disadvantage of the Departmental

question 62

Multiple Choice

Which of the following is a disadvantage of the departmental overhead rate method?

• A)It may fail to accurately assign many overhead costs that are not driven by production volume.
• B)Allows each department to have its own overhead rate.
• C)Allows each department to have its own allocation base.
• D)The departmental overhead rate is usually more accurate in overhead allocations than the plantwide overhead rate.
• E)The departmental overhead rate is consistent with GAAP and can be used for external reporting.

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Definitions:

Cognitive-Behavioral Therapy

A short-term psychotherapeutic treatment aiming to change patterns of thinking or behavior that contribute to people's difficulties, thus changing the way they feel.

Present Focus

The practice of being mentally and emotionally engaged in the current moment, often used as a mindfulness technique.

Rational Emotive Behavior Therapy

A form of psychotherapy that helps individuals identify and change irrational beliefs, reducing emotional pain and behavioral issues.

Distressing Feelings

Unpleasant emotional responses that can result from a wide range of situations, including stress, fear, or grief.