Traditionally,overhead Has Been Assigned Based on Direct Labor Hours or Machine

question 122

Multiple Choice

Traditionally,overhead has been assigned based on direct labor hours or machine hours.What effect does this have on the cost of a high-volume item?

• A)over-costs the product
• B)under-costs the product
• C)has no effect the product cost
• D)cost per unit is unaffected by product volume

---

Definitions:

Cold Sore

Cold sore, also known as a fever blister, is a common viral infection manifesting as small, painful blisters on the lips or around the mouth, caused by the herpes simplex virus.

Neurotransmitters

Chemical messengers that transmit signals across synapses from one neuron to another, influencing mental and physical functions.

Mood

A temporary state of mind or feeling that influences an individual's emotional state.

Emotion

Emotion is a complex psychological state involving an individual's subjective experience, physiological response, and behavioral expression in response to a stimulus.