TRUE, The appeal of using multiple departmental outflow rates is that they presumably give a more accurate account of the costs caused by jobs.
The use of departmental overhead rates is justified by the likelihood that manufacturers will produce a wide range of products using various departments' unique procedures at varying prices.
Departmental Overhead Rates: The cost rate for each department in a factory production process is known as the departmental overhead rate. When distinct departments carry out particular actions to accomplish the end process, the departmental overhead rate varies at each stage of the manufacturing process.
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