If Only One or Two Overhead Cost Pools Are Used

question 6

Multiple Choice

If only one or two overhead cost pools are used,

• A)it will be easy to determine which products or services are creating the most costs.
• B)overhead created by a specific product will be assigned to all products.
• C)the reduction in cost accumulation and allocation time will raise company profits.
• D)allocations should be made using only unit-based cost drivers.

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Definitions:

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The numerical outcomes reflecting the performance of individuals in examinations; these scores are used for evaluation and comparison.

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A mathematical expression indicating the probability of a continuous random variable assuming a certain value.

Uniform Distribution

A probability distribution in which all outcomes are equally likely across a defined interval.

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The duration of time spent waiting for a subway train to arrive, often of interest in studies of public transportation efficiency and commuter satisfaction.