A key aspect to the multiple production department rate method for overhead application is
A)choosing an appropriate cost driver for each product manufactured
B)choosing an appropriate cost driver for each production department
C)choosing an appropriate number of support departments to include in overhead
D)determining the amount of support activity used by the entire production facility

Question

Quizplus · Accepted Answer

The multiple production department rate method involves assigning overhead costs to products based on the specific activities that occur in each production department. Therefore, it's crucial to choose an appropriate cost driver for each production department to accurately allocate these costs.

A Key Aspect to the Multiple Production Department Rate Method