Which of the following statements regarding plantwide overhead rates is true?
A) As the number of diverse products a company makes increases,the likelihood that a plantwide overhead rate will be accurate increases.
B) Plantwide overhead rates must use machine hours as their cost driver.
C) As the number of diverse products a company makes increases,the likelihood that a company will replace a plantwide overhead rate with a departmental overhead rate increases.
D) Plantwide overhead rates are usually more costly to prepare than a departmental overhead rate.
Correct Answer:
Verified
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