Which of the Following Statements About the Use of Direct

question 13

Multiple Choice

Which of the following statements about the use of direct labor as a cost driver is false?

• A) Direct labor is the most commonly used cost driver when calculating a predetermined overhead rate.
• B) Direct labor is gaining importance in many manufacturing applications with respect to being a significant cost driver.
• C) Direct labor is an inappropriate cost driver to use if a company is highly automated.
• D) If direct labor is a good cost driver, increases in direct labor are matched with increases in manufacturing overhead.
• E) Companies can use either direct labor cost or direct labor hours as a cost driver.

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Definitions:

Gender Bias

Prejudice or discrimination based on a person's gender or sex, often resulting in unfair treatment.

Male Perspective

This refers to viewpoints, experiences, or considerations specifically associated with male individuals or masculinity.

Virtue Notion

The concept that focuses on moral excellence as a foundational characteristic of people, emphasizing virtues as essential to ethical behavior.

Equal Employment

Policies and practices aimed at preventing workplace discrimination and ensuring fair treatment and opportunities for all employees, regardless of their personal characteristics.