Which of the Following Statements Is Incorrect

question 86

Multiple Choice

Which of the following statements is incorrect?

• A) A predetermined overhead rate may be used to allocate overhead costs when volume varies during the year.
• B) A predetermined overhead rate is calculated using actual cost and volume data.
• C) A predetermined overhead rate is calculated by dividing costs by volume, using a measure of volume such as direct labor hours or direct materials cost.
• D) A company may need to allocate overhead costs to products to make pricing decisions for the products.

---

Definitions:

Reduced Working Hours

A labor policy or arrangement where the standard number of hours worked by employees is decreased without a significant reduction in pay, aimed at improving work-life balance.

Mentor

An individual who provides guidance, coaching, counseling, and friendship to a protégé.

Career Anchors

A network of self-perceived talents, motives, and values that guide an individual’s career decisions.

Work Experiences

The involvement or exposure to different situations, tasks, and roles within a professional setting, contributing to an individual's skillset and understanding of the workplace.