Which of the Following Is Not a Reason to Allocate

question 78

Multiple Choice

Which of the following is not a reason to allocate overhead?

• A)Unlike direct materials and direct labor, the amount of overhead actually incurred may not be known at the time a job is being worked on.
• B)Manufacturing overhead is an indirect cost that cannot be physically or economically traced back to a specific item.
• C)Allocation is more accurate than tracing items directly to jobs.
• D)Some overhead costs are seasonal and should be spread over production for the entire year.

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Definitions:

Dress Factory

A manufacturing facility where dresses are produced in large quantities.

Production Isoquants

Curves that represent combinations of various inputs that result in the same level of output, used in the analysis of production technology.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, keeping all other inputs constant.

Machines

Mechanical or electrical devices that perform specific tasks or assist in completing work more efficiently.