Which of the Following Is Not Possible to Use as a Cost

question 13

Multiple Choice

Which of the following is not possible to use as a cost allocation base for manufacturing overhead?

• A) direct labour dollars
• B) direct labour hours
• C) direct material dollars
• D) direct labour hours or dollars
• E) indirect labour hours

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Definitions:

Supply and Demand

Fundamental economic concepts describing the relationship between the availability of products and the desires of consumers, dictating the price of goods and services.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and costs.

Truth in Savings Act

A federal law designed to promote fairness and transparency in the savings account practices of banks and other financial institutions.