Which of the Following Would Be Least Likely to Be

question 21

Multiple Choice

Which of the following would be least likely to be used as an allocation base in a company that applies a single plantwide rate?

• A) Machine hours.
• B) Direct material costs.
• C) Direct labor cost.
• D) Direct labor hours.

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Definitions:

Revenue

Revenue is the total income generated from normal business operations, like selling goods or services, before any expenses are deducted.

Economic Profits

The difference between the total revenue earned by a firm and the total costs of production, including opportunity costs.

Market Demand Curve

A graphical representation showing the total demand of all consumers in a market for a particular product at different prices.

Colluded

A situation where firms in a market agree to set prices or output levels to maximize collective profits, often at the expense of competition.