Question

In: Accounting

The appeal of using multiple departmental overhead rates is that they presumably provide a more accurate...

The appeal of using multiple departmental overhead rates is that they presumably provide a more accurate accounting of the costs caused by jobs.

True or False

Solutions

Expert Solution

Yes. The statement is True.

If the company using Activity-based costing it means the company wants to show its cost more accurately.

Instead of usage of one departmental overhead rate, multiple overhead rate it resumes overhead rate shows per activity or job in accurate manner.


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