Question

An allocation system that uses departmental overhead allocation rates is more refined than one that uses a plantwide overhead allocation rate.a) trueb) false

Answer 1

True

Step-by-step explanation:

The departmental overhead allocation can be used in the case when the activity of the department is predicted also it is more refined than plant-wide as it applied for a single allocation rate. While on the other hand the departmental overhead rate is applied when there are several products that needed different process to manufacture a product

Therefore the given statement is true