The justification for not using a departmental rate for overhead cost assignment is that it increases accuracy.

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The justification for not using a departmental rate for overhead cost assignment is that it decreases accuracy as it assumes the same overhead rate for all departments, which may not reflect the actual usage of overhead resources by each department. Instead, activity-based costing or other more sophisticated methods can be used to assign overhead costs more accurately.

The Justification for Not Using a Departmental Rate for Overhead