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How does using a plantwide overhead allocation system lead to inaccurately assigning more overhead cost to high - volume products than to low - volume
How does using a plantwide overhead allocation system lead to inaccurately assigning more overhead cost to high volume products than to low volume products?
A Because a plantwide allocation base does not include all of the indirect costs of manufacturing.
B Because a plantwide allocation base uses an allocation base that is sensitive to quantity or volume.
C Because a plantwide allocation base uses estimated overhead costs when calculating a predetermined overhead rate.
D Because a plantwide allocation system does not use an allocation base that is sensitive to quantity or volume.
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