Managerial Accounting

Free Version

Upgrade subject to access all content

Easy

When are Multiple Overhead Rates Better than a Traditional Rate?

MGRACT-44MPYL

When are multiple or departmental overhead rates preferable to a single or "traditional" or plant-wide overhead rate?

A

When the products are very different from each other.

B

When the products are very similar to each other.

C

When overhead costs are relatively minor as part of the total product cost.

D

When most of the overhead is related to a particular cost driver.