Which of the Following Accurately Describes Advantages and Disadvantages of Employing

question 5

Multiple Choice

Which of the following accurately describes advantages and disadvantages of employing a system of allocation that uses a plant-wide rate?

• A)The plant-wide rate approach is the simplest to apply, but it is also the most costly to implement.
• B)The plant-wide rate approach is the simplest to apply, but most likely provides the least accurate product costs.
• C)The plant-wide rate may be straightforward, but it is not appropriate for small businesses that offer a single service or product.
• D)The plant-wide rate really offers no advantage whatsoever.

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Definitions:

Unfair Methods

Practices in trade or business that are deemed deceptive, fraudulent, or against the competition law, harming consumers or competitors.

Sherman Act

A United States antitrust law enacted in 1890 to prohibit monopolies and prohibit business activities that prevent or restrict competition in interstate commerce.

Monopoly Power

The exclusive control by one company over an entire industry or sector, allowing for the setting of prices and lack of competition.

Unfair Conduct

Actions or practices that are deceptive, misleading, or unethical in a business context, often regulated by consumer protection laws.