Which One of the Following Is Used Most Frequently to Allocate

question 64

Multiple Choice

Which one of the following is used most frequently to allocate overhead costs in continuous manufacturing operations?

• A)direct labour dollars
• B)direct labour hours
• C)machine hours
• D)machine maintenance dollars

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Definitions:

LRAC Curve

Long-Run Average Cost Curve, a graphical representation showing the minimum cost at which any output level can be produced in the long run.

Exiting Firms

Businesses that are leaving a particular market due to various reasons such as unprofitability, strategic realignment, or market saturation.

Increasing-Cost Industry

An industry in which production costs increase as the industry's output expands.

Constant-Cost Industry

An industry where the cost of production does not change as the industry's output changes.