More accurate product costing information is produced by assigning costs using
A)volume-based, plantwide rates.
B)volume-based, departmental rates.
C)activity-based pool rates.
D)All of the above produce accurate product costing information.

Question

Quizplus · Accepted Answer

Activity-based pool rates provide the most accurate product costing information because they use multiple cost drivers to allocate costs based on the actual activities required to produce a product. This approach takes into account the complexity of different products and the actual use of resources, providing a more accurate reflection of the true cost of producing a product. Volume-based, plantwide and departmental rates are less accurate because they rely on broad averages and do not account for the specific activities required to produce each product.

More Accurate Product Costing Information Is Produced by Assigning Costs