Which of the Following Statements About Using a Plantwide Overhead

question 272

Multiple Choice

Which of the following statements about using a plantwide overhead rate based on direct labor is correct?

• A) Using a plantwide overhead rate based on direct labor-hours will ensure that direct labor costs are correctly traced to jobs.
• B) Using a plantwide overhead rate based on direct labor costs will ensure that direct labor costs will be correctly traced to jobs.
• C) It is often overly simplistic and incorrect to assume that direct labor-hours is a company's only manufacturing overhead cost driver.
• D) The labor theory of value ensures that using a plantwide overhead rate based on direct labor will do a reasonably good job of assigning overhead costs to jobs.

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects a person's ability to think, feel, and behave clearly, often involving delusions and hallucinations.

Genetic Predisposition

The increased likelihood of developing a particular disease based on a person's genetic makeup.

Schizophrenic

Pertaining to schizophrenia, a mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Genetic Vulnerability

A predisposition to certain conditions or diseases based on one's genetic makeup, which may increase the risk of developing these conditions.