Which of the Following Is Not True

question 5

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 traditional overhead rate method.

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Definitions:

Characterised

Described in terms of distinctive qualities or features.

Direct

In financial and business contexts, this term refers to a method or approach that involves straight interaction without intermediary channels, often used in marketing to describe direct communication or sales to customers.

NCI Allocation

Refers to the distribution of Net Current Assets among various parties or accounts, primarily focusing on how non-controlling interest (NCI) is allocated in consolidated financial statements.

Equity Account

An account that represents the owner's interest in a company's assets, typically reflecting the amount of funds that remain for the owners after all liabilities have been subtracted.