A single plantwide overhead application rate
A)focuses on identifying multiple drivers to apply to every single production department
B)is likely to result in the most accurate product costs
C)is likely to result in inaccurate product costs
D)requires a multiple-step application process from support departments to production departments

Question

Quizplus · Accepted Answer

A single plantwide overhead application rate often uses only one cost driver for the entire plant, which can lead to inaccuracies in assigning overhead costs to products, especially if different products consume overhead activities in different proportions.

A Single Plantwide Overhead Application Rate