Overhead Costs

question 7

Multiple Choice

Overhead costs:

• A)Are directly related to production.
• B)Can be traced to units of product in the same way that direct materials can.
• C)Cannot be traced to units of product in the same way that direct labor can.
• D)Are period costs.
• E)Include only fixed costs.

---

Definitions:

Decision-Critical Criteria

Key factors or standards considered essential in making a decision or judgment on an issue or option.

Dominance Structuring

The process of organizing or arranging elements, often in a hierarchical manner, to establish or maintain a dominant position.

Elimination By Aspect

A decision-making process where alternatives are systematically rejected based on the absence or presence of certain attributes.

Satisficing

A decision-making strategy which aims for an adequate rather than the optimal solution, prioritizing sufficiency over perfection.