Multiple production department factory overhead rates are less accurate and less costly than are plantwide factory overhead rates.

Question

Quizplus · Accepted Answer

Multiple production department factory overhead rates are more accurate than plantwide factory overhead rates as they allocate overhead costs based on the specific activities of each department. While it may be more costly to implement multiple rates, the increased accuracy can lead to more informed decision-making and ultimately better management of production costs.

Multiple Production Department Factory Overhead Rates Are Less Accurate and Less