When Using a Single Cost Driver to Allocate Overhead Costs

question 53

Multiple Choice

When using a single cost driver to allocate overhead costs, the amount of overhead costs that are applied is

• A)usually greater for low-volume products than for high-volume products.
• B)usually greater for high-volume products than for low-volume products.
• C)usually equal for both low and high-volume products.
• D)sometimes greater for higher-volume products, and sometimes greater for low-volume products.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Reactivity

The state or capacity of being reactive or the degree to which a thing is reactive.

Orphanages

Residential institutions dedicated to the care of children whose parents are deceased or otherwise unable or unwilling to care for them.

Centration

The tendency of young children to focus only on one aspect of an object or situation, a characteristic of preoperational stage of cognitive development.