Rank the following methods of assigning overhead costs from least accurate to most accurate.
A)departmental rates,plantwide rate,activity-based costing
B)plantwide rate,departmental rates,activity-based costing
C)plantwide rate,activity-based costing,departmental rates
D)activity-based costing,departmental rates,plantwide rate

Question

Quizplus · Accepted Answer

Plantwide rate is the least accurate as it uses a single overhead rate for the entire plant. Departmental rates are more accurate as they use different rates for different departments. Activity-based costing is the most accurate as it assigns costs based on actual activities and resource usage.

Rank the Following Methods of Assigning Overhead Costs from Least