Which of the Following Is NOT a Limitation of a Plant-Wide

Multiple Choice

Which of the following is NOT a limitation of a plant-wide overhead rate?

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