Assume That Direct Labor and Direct Materials Are the Major

question 22

Multiple Choice

Assume that direct labor and direct materials are the major cost components of a product and that the small amount of overhead cost can easily be associated with products using a simple overhead allocation basis such as direct labor hours. Which one of the following statements is the most correct?

• A) Activity-based costing should probably be used in this situation.
• B) Activity-based costing is probably too expensive to justify using it in this situation.
• C) Job order costing is probably too expensive to justify using it in this situation.
• D) None of these are correct

---

Definitions:

Queer Theory

An interdisciplinary approach that seeks to disrupt normative assumptions about gender and sexuality.

Actor-Network Theory

A theoretical and methodological approach in social science that treats objects and non-human entities as part of social networks, emphasizing the interactivity between humans and objects.

Affect Theory

A theoretical approach focusing on the study of emotions and their affective dimensions as they influence social life and political outcomes.

Prosumption Theory

A concept that blurs the lines between production and consumption, suggesting that consumers are active participants in the production process.