Choosing Direct-Labor Cost Rather Than Direct-Labor Hours as a Cost

question 157

Multiple Choice

Choosing direct-labor cost rather than direct-labor hours as a cost driver for overhead implies that _____.

• A)higher paid employees use proportionally more support cost
• B)higher paid employees use proportionally less support cost
• C)direct labor cost data is easier to obtain
• D)direct labor hour data is easier to obtain

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Definitions:

Cash Welfare Payments

Government-provided financial assistance to individuals or families, often aimed at reducing poverty.

Immigrants

Individuals who move from one country to another for the purpose of settling or residing there, often in search of a better life or opportunities.

Industrial Country

A nation with a significant portion of its economy based on manufacturing and industry, often characterized by a high standard of living and advanced technological infrastructure.

Developing Nation

A country with a less developed industrial base and a lower Human Development Index relative to other countries.