The Overhead Allocation Base Should Be the Cost Driver of Manufacturing

question 90

True/False

The overhead allocation base should be the cost driver of manufacturing overhead costs.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that instinctively and automatically induces a response without previously being learned.

Extinction

In psychology, the gradual disappearance of a conditioned response when the reinforcement is withheld; in biology, the end of an organism or of a group of organisms.

Stimulus Generalization

A psychological phenomenon where a response is elicited by stimuli similar, but not identical, to the original stimulus used in conditioning.