Why is using a single plantwide predetermined overhead allocation rate not always accurate?
What will be an ideal response?
Using a single plantwide predetermined overhead allocation rate is not always accurate because it is based on only one allocation base and uses that same allocation base to allocate overhead to all products. The allocation base selected might not accurately reflect the way products actually use a company's resources. There might not be a direct cause-and-effect relationship with overhead costs.
Diff: 2
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Describe how to communicate effectively across cultures.
What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false