A Suitable Cost Driver for the Amount of Direct Materials

question 69

True/False

A suitable cost driver for the amount of direct materials used is the number of direct labor hours worked.

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Definitions:

Type A

Often referring to Type A personality, characterized by competitiveness, self-imposed stress, and a sense of urgency.

Type O

A blood type in the ABO blood group system characterized by the absence of A and B antigens on red cells and the presence of anti-A and anti-B antibodies in the plasma.

Anterior Pituitary

The front portion of the pituitary gland, which secretes hormones regulating a variety of physiological processes including stress, growth, and reproduction.

Embryonic Origin

Refers to the initial stage of development in multicellular organisms, from which all tissues and organs develop.