Which of the following is not true? A. The departmental overhead method assigns

Question

Which of the following is not true? A. The departmental overhead method assigns overhead on the basis of volume-related measures. B. The departmental overhead rate method is more refined than the plantwide overhead rate method. C. Overhead costing accuracy is improved by the use of multiple departmental rates rather than a single overhead rate. D. The departmental overhead rate method does not assign overhead on the basis of volume related measures. E. The departmental overhead rate method is more costly to implement than the traditional overhead rate method.

Explanation / Answer

All the options are True except for option D. It is incorrect to say that departmental overhead rate method doesnot assign overhead on the basis of volume related measures. The reason is that it assigns overhead on the basis of volume-related measures. It is also a much more refined method than the plantwide overhead rate method.

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