Which of the Following Statements About the Use of Direct

question 17

Multiple Choice

Which of the following statements about the use of direct labor as a cost driver is false?

• A)Direct labor is the most commonly used cost driver when calculating a predetermined overhead rate.
• B)Direct labor is gaining importance in many manufacturing applications with respect to being a significant cost driver.
• C)Direct labor is an inappropriate cost driver to use if a company is highly automated.
• D)If direct labor is a good cost driver,increases in direct labor are matched with increases in manufacturing overheaD.
• E)Companies can use either direct labor cost or direct labor hours as a cost driver.

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Definitions:

Joint Contracture

A permanent shortening of a joint and soft tissues, leading to restricted movement and flexibility.

Center of Gravity

The point within an object or body where the gravitational force can be considered to act, crucial in matters of stability and balance.

Body Mass

A measure of body weight in relation to height, often used to assess if a person is underweight, overweight, or within a healthy weight range.

Osteoporosis

A condition characterized by weakened bones, making them fragile and more likely to break, often due to a lack of calcium or vitamin D.