Cost Behavior for Variable Overhead Is More Difficult to Predict

question 46

Multiple Choice

Cost behavior for variable overhead is more difficult to predict than the behavior of direct materials or direct labor cost for all the following reasons except:

• A) Multiple cost drivers are usually involved with variable overhead.
• B) Direct material and direct labor contain no semi-variable component.
• C) The variable portion of overhead must first be separated from the fixed portion.
• D) Variable overhead is a relatively small part of total overhead.

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Definitions:

Oedipus Complex

A psychoanalytic theory which posits a child's unconscious sexual desire for the opposite-sex parent and jealousy toward the same-sex parent.

Phallic Stage

A stage in Freud's theory of psychosexual development, occurring between ages 3 and 6, where the libido is centered on the genital area.

Superego Development

The formation and growth of the superego, which is the part of the personality that holds moral standards, ideals, and conscience.

Castration Anxiety

A psychoanalytic concept suggesting that the fear of losing one’s genitalia or their power as a symbolic representation of masculinity.