A Job That Shows Low Profitability May Be the Result

question 46

Multiple Choice

A job that shows low profitability may be the result of all of the following except:

• A)inefficient use of direct materials.
• B)inefficient direct manufacturing labor.
• C)overpricing the job.
• D)over-allocating overhead costs.

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Definitions:

Estimable

Capable of being estimated or approximated in quantity or degree.

Remote Event

An event or condition with a very low chance of occurring, often considered insignificant in financial forecasting and analysis.

Probable Likelihood

This term refers to the high chance of occurrence or expectation that a specific event or outcome will happen.

Liability

Financial obligations or debts that a company or individual owes to others, required to be settled over time.