Question

A multiple predetermined overhead rate system is more accurate than a plantwide overhead rate system because it ______. Multiple choice question.

Answer 1

A multiple predetermined overhead rate is more accurate because it shows the way cost is incurred by various departments.

Multiple Predetermined Overhead Rates

• These are rates used to calculate production overhead.
• They reflect each individual department involved in production.

This is better than a plantwide overhead rate which simply reflects a single overhead rate for the entire company regardless of the fact that each department incurs costs differently and so should be accounted for differently.

Find out more on the predetermined overhead rate at brainly.com/question/4337723.