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    Financial and Managerial Accounting Study Set 11
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    Exam 19: Support Department and Joint Cost Allocation
  5. Question
    A Major Drawback to Using a Single Plantwide Rate Is
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A Major Drawback to Using a Single Plantwide Rate Is

Question 112

Question 112

True/False

A major drawback to using a single plantwide rate is that it is applied using a single driver for all overhead costs and it is unlikely that the driver is appropriate for every type of overhead.

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