Which of the Following Is an Example of Ordinary Wear

question 14

Multiple Choice

Which of the following is an example of ordinary wear and tear?​

• A)permanent stains in the porcelain toilet bowl
• B)broken windows
• C)wine stains on curtains caused by a careless guest
• D)fingernail scratches around drawer pulls on kitchen cabinets

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Definitions:

First-Stage Allocation

The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.

ABC System

The Activity-Based Costing system that assigns manufacturing overhead costs to products in a more logical manner by taking into account the specific activities that incur costs.

Activity Cost Pools

Groups of related costs that are associated with particular activities, used in activity-based costing.

Direct Labor Costs

These are wages and benefits paid to employees who are directly involved in the production of goods.