What Is the Primary Drawback to Using a Volume-Driven Base,such

question 54

Multiple Choice

What is the primary drawback to using a volume-driven base,such as direct labor or machine hours,to apply overhead to products in a traditional cost accounting system?

• A)The cost accountant may not fully understand how to track direct labor or machine hours.
• B)It is difficult for an AIS to incorporate such a measurement into its system.
• C)It is difficult for an ERP to incorporate such a measurement into its integrated system.
• D)Many overhead costs are incorrectly allocated to products since they do not vary with production volume.

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Definitions:

Psychological Disorders

Mental health conditions characterized by significant disturbances in an individual's thoughts, feelings, or behaviors, which can impact daily functioning.

Approved Diagnoses

Medical or psychological conditions recognized and sanctioned by authoritative bodies for treatment and insurance coverage.

Axis I

A classification system used in diagnosing mental health disorders, focusing on clinical syndromes that cause significant impairment.

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.