Hough Company Manufactures a Wide Variety of Products

question 6

Multiple Choice

Hough Company manufactures a wide variety of products.A high proportion of its indirect costs are batch-level costs,such as acquiring materials,moving materials within the factory,and setting up machines.Hough uses direct labor hours to assign indirect costs to all of its products.How is this use of a traditional product costing system likely to affect the costs of Hough's high-volume and low-volume products?

• A) All of its products are undercosted.
• B) Its low-volume products are overcosted.
• C) All of its products are overcosted.
• D) Its high-volume products are overcosted.

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Definitions:

Conscientiousness

A characteristic reflecting a person's ability to be organized, reliable, and possess a profound commitment to obligations.

Longevity

The length of time that an individual or entity lives or exists, often used in discussions about life span and quality of life improvements.

Type T Personality

Personality type characterized by thrill-seeking behaviors, tendency to take risks, and a desire for excitement.

Type A Personality

A personality type characterized by high levels of competitiveness, self-driven behavior, a sense of urgency, and an aggressive nature.