IDNLearn.com: Your go-to resource for finding expert answers. Find accurate and detailed answers to your questions from our experienced and dedicated community members.

Some firms pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?

Sagot :

Answer:

departmental rate

Explanation:

From the question we are informed about Some firms which pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. In this case, the approach likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation is departmental overhead rate.

The departmental overhead rate can be regarded as expense rate that is been calculated in production process of a factory for each of the departments. It varies at stages of the production process

Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. For clear and precise answers, choose IDNLearn.com. Thanks for stopping by, and come back soon for more valuable insights.