Which of the Following Is Used to Charge the Cost

question 69

Multiple Choice

Which of the following is used to charge the cost of direct labor to the production?

• A)Debit for standard quantity for actual production times standard cost per hour
• B)Credit for standard quantity usage for actual production times actual cost per hour
• C)Debit for actual quantity times standard cost per hour
• D)Credit for standard quantity for actual production times standard cost per hour

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Definitions:

Incremental Revenues

Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.

Incremental Revenues

Additional income generated from a particular business decision or activity, beyond the existing baseline revenue.

Unavoidable Cost

A cost that cannot be eliminated and must be incurred regardless of the action taken.

Relevant Cost

Costs that are directly tied to a specific managerial decision and will change as a result of that decision, critical for effective cost management and decision-making processes.