Because They Tend to Be Fairly Expensive, Consultants Are Best

question 32

Multiple Choice

Because they tend to be fairly expensive, consultants are best used for ____.

• A)technology startups
• B)human resources
• C)critical one-time advice or problem solving
• D)employee leasing
• E)repetitive tasks

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Definitions:

Overapplication of Overhead

The situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred during a period.

Machine Hours

A measure of the time a machine is in operation, used in cost accounting to allocate machine costs to products.

Overhead Applied

The allocation of estimated overhead costs to specific jobs or production units during an accounting period.

Direct Labor Cost

The wages and related benefits of employees who are directly involved in the production of goods or services.