In a Labor Intensive Company in Which More Overhead Is

question 33

Multiple Choice

In a labor intensive company in which more overhead is used by the more highly skilled and paid employees,which activity base would be most appropriate for applying overhead to production?

• A)Direct labor cost.
• B)Direct material cost.
• C)Direct labor hours.
• D)Machine hours.
• E)Sales value of the product produced.

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Definitions:

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 aimed at promoting economic competition by prohibiting monopolies, cartels, and other forms of anticompetitive practices.

Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service to different customers, based on their willingness to pay.

Disneyland

A globally recognized theme park brand, known for its entertainment complexes that blend imaginative attractions with characters from Disney movies.

Southern California

A geographical and cultural region in the southwestern part of the U.S. state of California.