Because departmental overhead costs are allocated based on measures closely related to production volume,they accurately assign overhead,such as utility costs.

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Departmental overhead costs are allocated based on various allocation bases (e.g., labor hours, machine hours, square footage) which may not accurately reflect the consumption of overhead resources like utility costs for every activity or product, leading to potential inaccuracies in overhead assignment.

Because Departmental Overhead Costs Are Allocated Based on Measures Closely