Choosing Direct Labor Cost Rather Than Direct Labor Hours as a Cost

question 122

Multiple Choice

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

• A) direct labor cost data is more accurate
• B) direct labor cost data is easier to obtain
• C) higher paid employees use proportionately less overhead support than lower paid employees
• D) higher paid employees use proportionately more overhead support than lower paid employees

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Definitions:

Anton Piller Order

A court order to seize offending material before trial; name derives from a prominent English case where the order was first used.

Infringement

The act of violating a law or a right, particularly referring to unauthorized use of intellectual property.

Copyright Holder

The entity or individual that legally owns the exclusive rights to reproduce, distribute, perform, or display a work.

Seize Material

The act of taking possession of property, typically used in the context of law enforcement or legal action against goods that are suspected of being involved in illegal activities or evidence.