Which of the Following Is a Disadvantage of the Departmental

question 135

Multiple Choice

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

• A)The departmental overhead rate 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)The departmental overhead rate method does not assign overhead on the basis of volume-related measures.
• D)The departmental overhead rate method is simpler and less costly to implement than the plantwide rate method.
• E)There are no disadvantages of the departmental overhead rate method.

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