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:

Benefits

The advantages or profits gained from something, including goods, services, or actions.

Elastic Demand

A situation where the demand for a product is sensitive to price changes, indicating that a small change in price can lead to a significant change in the quantity demanded.

Less Elastic

Describes a situation where a change in price leads to a relatively smaller change in the quantity demanded or supplied.

Market Segment

A group of potential customers who share similar needs or characteristics that a company targets with its products or services.