Multiple (departmental) manufacturing overhead rates are considered preferable to a single (plantwide) overhead rate when: (CMA adapted)
A. The single or plantwide rate is related to several identified cost drivers.
B. Manufacturing is limited to a single product flowing through identical departments in a fixed sequence.
C. Various products are manufactured that do not pass through the same departments or use the same manufacturing techniques.
D. Individual cost drivers cannot accurately be determined with respect to cause-and-effect relationships.
Answer: C
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