The Principle of Establishing Responsibility Does Not Include

question 62

Multiple Choice

The principle of establishing responsibility does not include

• A)one person being responsible for one task.
• B)authorization of transactions.
• C)independent internal verification.
• D)approval of transactions.

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods or delivery of services.

Allocation Base

A criterion or measure used for distributing overhead costs among various cost objects, such as machine hours, labor hours, or units produced.

Machine-Hours

A measure of production volume expressed in the total number of hours that machines are operated.

Departmental Predetermined Overhead Rates

Rates used to allocate overhead costs to products, calculated in advance for each department based on estimated overheads and activity levels.