Which of the following is a disadvantage of the departmental overhead rate method quizlet?

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1,009 solutions

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777 solutions

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9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Intermediate Accounting

14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

1,471 solutions

System designed to eliminate waste in the accounting process and better reflect the benefits of lean manufacturing techniques.

-Lean thinking to eliminate waste in the accounting process.

-Alternative performance measures, like the percentage of products made without defects and the percentage of on-time deliveries.

-Simplified product costing. With JIT, most of the product costs during a period will be included in cost of goods sold rather than in inventory. Instead of transferring costs across inventory accounts during a period, a backflush costing system measures the costs of inventory only at the end of the period. Costs of unfinished products are "flushed out" of Cost of Goods Sold and transferred to inventory accounts.