The Change in the Amount of Manufacturing Overhead Costs Applied

question 32

Multiple Choice

The change in the amount of manufacturing overhead costs applied to a company's mix of products that are produced when using a single cost driver rate as compared to using activity-based cost driver rates is known as:

• A)under/over applied overhead.
• B)cost dysfunction.
• C)cost absorption.
• D)cost distortion.

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Definitions:

Kilo-

A prefix in the metric system denoting a factor of one thousand.

Ounce

A unit of weight in the avoirdupois system, equal to 1/16 of a pound or approximately 28.35 grams.

Abbreviation

A shortened form of a word or phrase used to simplify written and verbal communication.

Pound

A unit of weight in the British imperial and the United States customary systems of measurement, equal to 16 ounces.