A Managerial Accountant Has Determined the Following Relationships Between Overhead

question 121

Multiple Choice

A managerial accountant has determined the following relationships between overhead and several possible bases: $\begin{array}{cc}& \text {Correlation with Total }\\ \text { Basis }& \text { Overhead}\\\text { Direct labor hours } & 0.842 \\\text { Direct labor dollars } & 0.279 \\\text { Machine hours } & -0.837 \\\text { Employee minutes in coffee breaks } & -0.243\end{array}$ The best basis for overhead application is

• A)direct labor hours.
• B)coffee breaks.
• C)direct labor dollars.
• D)machine hours.

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Definitions:

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The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize, monitor, and control the impact of unforeseen events.

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The process of recording information or evidence systematically, often for legal, medical, or business purposes.

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