The Four Most Common Activity Bases Used for Overhead Cost

question 141

True/False

The four most common activity bases used for overhead cost allocation purposes are direct labor dollars, units of output, water pressure, and machine hours.

---

Definitions:

Landowners

Individuals or entities that hold legal title or ownership of land.

Pure Economic Rent

The income derived from the inherent value of a natural resource or location, excluding any income attributed to improvements or human intervention.

Input

Resources used in the production process, including labor, capital, and materials.

Reliability

The extent to which an assessment, test, or measurement can consistently produce the same results under the same conditions.