Which of the following is not true?
A) The departmental overhead method assigns overhead on the basis of volume-related measures.
B) The departmental overhead rate method is more refined than the plantwide overhead rate method.
C) Overhead costing accuracy is improved by the use of multiple departmental rates rather than a single overhead rate.
D) The departmental overhead rate method does not assign overhead on the basis of volume-related measures.
E) The departmental overhead rate method is more costly to implement than the traditional overhead rate method.

Question

Quizplus · Accepted Answer

The statement "The departmental overhead rate method does not assign overhead on the basis of volume-related measures" is not true. In fact, the departmental overhead rate method assigns overhead on the basis of volume-related measures specific to each department.

Which of the Following Is Not True