Which of the Following Is NOT a Limitation of a Plantwide

Multiple Choice

Which of the following is NOT a limitation of a plantwide overhead rate?

A) Product diversity may consume overhead activities under differing consumption ratios.
B) Overhead usage is not strictly linked to the units produced because some products are more complex and diverse than others.
C) Predetermined rates using budgeted overhead are usually the best estimate of the amount of overhead.
D) Overhead costs tend to be underallocated to highly complex products.