For What Reason Have Companies Recently Chosen Machine Hours as an Activity

question 56

Multiple Choice

For what reason have companies recently chosen machine hours as an activity base when calculating a predetermined overhead rate?

• A)an increase in direct labour costs
• B)it is a more reliable source than other activity bases
• C)the lack of verifiable hours for direct labour
• D)an increasing use of automated manufacturing operations

---

Definitions:

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.

Herbivory

The act of eating plants, typically referring to the feeding behavior of certain animals.

Competitive Exclusion

A principle stating that two species competing for the same limited resource cannot coexist at constant population values.

Character Displacement

An evolutionary phenomenon where species that compete for similar resources evolve differences, reducing competition.