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

question 93

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:

Price/Earnings Ratio

A measure used in finance that compares the current price of a company's stock to its per-share earnings, indicating the market's expectations of the company's future earnings growth.

Inflation Rate

The speed at which the average cost of products and services increases, reducing the buying power.

Risk Averse

A tendency to prefer options that have fewer risks and more certain outcomes.