Which of the Following Is Not a Feature of Time

question 115

Multiple Choice

Which of the following is not a feature of time driven ABC:

• A) focus on capacity supplied and used
• B) consideration of the time taken to perform each activity
• C) consideration of hourly wage rates
• D) ability to adjust for flexibility of operations

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Definitions:

Finished Goods

Inventory items that have completed the manufacturing process and are ready for sale to customers.

Direct Labor Cost

The expense related to the work of employees directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Labor-Hours

Direct labor-hours are the total number of hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.

Direct Materials

Raw materials that can be directly identified with the production of specific goods or services and are a major component of product costs.