A profitable company with five departments uses plant-wide overhead rates for its highly diversified operation. The firm is studying a change to either allocating overhead by using departmental rates or using activity-based costing (ABC). Which one of these two methods will likely result in the use of a greater number of cost allocation bases and more accurate costing results?

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Greater Number of Allocation Bases a. Departmental b. Departmental ABC C. d. ABC More Accurate Costing Results Departmental ABC Departmental ABC