A single plant wide overhead rate can distort the cost of a particular product if there are
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Question:
A single plant wide overhead rate can distort the cost of a particular product if there are more than one product being produced. If the product consumes less overhead then it has too much overhead. Using another method would be more beneficial in accuracy for product pricing, and better monitoring costs performed. If a product is costing more overhead than it is losing money for the company giving them less profit and possibly even lose money. Monitoring the price allows for better margins and gains when producing mass products so budget is key when using single plant wide overhead.
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