Which of the following reflects the simplest allocation method for a factory?
A)The department allocation method.
B)The unit cost allocation method.
C)The plantwide allocation method.
D)The use of activity-based costing.

Question

Quizplus · Accepted Answer

The plantwide allocation method is the simplest allocation method for a factory as it allocates overhead costs to products based on a single predetermined machine or labor hour rate. This method is appropriate for factories that produce similar products and have relatively simple manufacturing processes. The other options require more detailed information and may require the use of cost drivers or multiple allocation rates to allocate costs more accurately.

Which of the Following Reflects the Simplest Allocation Method for a Factory