The Base for Allocating Overhead Costs Most Commonly Used in Practice

question 63

Multiple Choice

The base for allocating overhead costs most commonly used in practice is:

• A)Direct labour cost.
• B)Direct labour hours.
• C)Machine hours.
• D)Units produced.

---

Definitions:

Graduated Commission

A commission structure where the rate of commission increases with the level of sales or transactions completed.

Average Rate

The mean value of rates over a specified period or under certain conditions.

Mortgage Rate

The interest rate charged on a mortgage, typically expressed as an annual percentage.

GST

Goods and Services Tax, a type of value-added tax imposed on the majority of goods and services that are sold within the country for local use.