In Traditional Costing Systems, Overhead Is Generally Applied Based on

question 47

Multiple Choice

In traditional costing systems, overhead is generally applied based on

• A)direct labour for job-order costing, and machine hours for process-costing.
• B)direct material for job-order costing, and direct labour for process-costing.
• C)factory usage for both job-order costing and process-costing.
• D)units of production.

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Definitions:

Quotas

Predetermined targets set for sales, production, or other activities that individuals or organizations aim to achieve within a specific time frame.

Interdependence

A situation in which two or more elements or systems rely on each other to function properly, often seen in economic, social, and ecological systems.

Economic

Pertaining to the production, consumption, and transfer of wealth in a region or society.

Cultural

Pertaining to the ideas, customs, social behaviors, and characteristics of a particular society, group, place, or time.