If a company manufactures diverse products using different sets of resources in a plant, it is best to use a plantwide allocation rate.

Name: If a company manufactures diverse products using different sets of resources in a plant, it is best to use a plantwide allocation rate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A plantwide allocation rate may not accurately reflect the costs associated with each product if they use different resources. It's better to use departmental or activity-based costing for more precise allocation.

If a Company Manufactures Diverse Products Using Different Sets of Resources