Select the Incorrect Statement from the Following

question 85

Multiple Choice

Select the incorrect statement from the following.

• A) If overhead costs are allocated based on activities, the amount of overhead allocated to a particular product can be reduced by increasing the number of activities required by the product, thereby spreading the overhead costs over more units.
• B) Activity costs are considered relevant for decision-making because the cost of an activity will be avoided if the activity is eliminated.
• C) In highly automated environments where companies produce many different products with varying levels of production, activity-based cost drivers are superior to volume-based drivers.
• D) Activity-based cost drivers produce a better cost allocation than volume-based drivers because they distribute only relevant costs to the appropriate products.

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Definitions:

Projection Welds

Welds made by projecting localized heat and pressure onto particular points, typically used to join sheet metal parts at specified spots or studs.

Weld Symbol

A graphical representation on engineering drawings indicating the type of weld to be used.

Plug Weld

A type of weld used to fasten two pieces of metal together by filling a pre-drilled hole in the top piece with weld material which then attaches to the piece underneath.

Slot Weld

A type of weld used to join pieces of metal together through a slot in one piece that fits over another piece, typically used in sheet metal work.