Which of the following is not true? Overhead costing accuracy is improved by the

Question

Which of the following is not true?

Overhead costing accuracy is improved by the use of multiple departmental rates rather than a single overhead rate. The departmental overhead method assigns overhead on the basis of volume-related measures. The departmental overhead rate method is more costly to implement than the traditional overhead rate method. The departmental overhead rate method is more refined than the plantwide overhead rate method. The departmental overhead rate method does not assign overhead on the basis of volume-related measures.

Explanation / Answer

The departmental overhead rate method does not assign overhead on the basis of volume-related measures.

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