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TB MC Qu. 04-89 (Static) Which of the following is an... Which of the following...

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Accounting

TB MC Qu. 04-89 (Static) Which of the following is an...

Which of the following is an advantage of using the plantwide overhead rate method?

Multiple Choice

  • It helps distinguish value-added activities from non-value-added activities.

  • The necessary information is readily available.

  • It emphasizes activities and their costs and arguably better reflects how overhead cost is used in making products.

  • Each department has its own overhead rate and its own allocation base.

  • It takes into account that when products differ in batch size and complexity, they usually consume different amounts of overhead resources.

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