A company will improve job cost accuracy by using multiple overhead rates even if it cannot identify more than one overhead cost driver.

Question

Quizplus · Accepted Answer

Using multiple overhead rates is beneficial for improving job cost accuracy only if a company can identify different overhead cost drivers that correlate with the costs incurred. Without identifying more than one overhead cost driver, applying multiple rates would not be based on meaningful distinctions and thus would not necessarily improve accuracy.

A Company Will Improve Job Cost Accuracy by Using Multiple