Under Job Costing, Factory Overhead Costs Are Assigned to Products

question 43

Multiple Choice

Under job costing, factory overhead costs are assigned to products or services using labor or machine hours which are:

• A)Multiple cost pools.
• B)A homogeneous cost pool.
• C)Volume-based cost drivers.
• D)Non-volume-based cost drivers only.
• E)Activity-based cost drivers.

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Definitions:

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Productive Advantage

Occurs when a country, business, or individual produces a good or service at a lower opportunity cost than competitors, leading to more efficient production.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Production

The process of creating goods and services through the combination of labor, materials, and technology.