Which of the Following Is Not Typical of Traditional Costing

question 72

Multiple Choice

Which of the following is not typical of traditional costing systems?

• A) Use of a single predetermined overhead rate.
• B) Use of direct labor hours or direct labor cost to assign overhead.
• C) Assumption of correlation between direct labor and incurrence of overhead cost.
• D) Use of multiple cost drivers to allocate overhead.

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Definitions:

Fovea

An area near the center of the retina that is dense with cones and where vision is consequently most acute.

Cones

Cone-shaped photoreceptors that transmit sensations of color.

National Honor Society

An organization in the United States that recognizes high school students for their achievements in scholarship, leadership, service, and character.

Law of Continuity

A principle in Gestalt psychology stating that elements that are arranged on a line or curve are perceived to be more related than elements not on the line or curve.