For Which Costing System Is Overhead Allocated on the Basis

question 140

Multiple Choice

For which costing system is overhead allocated on the basis of the actual direct labour hours worked?

• A)Actual costing system
• B)Normal costing system
• C)Process costing system
• D)Activity-based costing system

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Definitions:

Inferior Goods

Products whose demand decreases as consumer income rises, opposite to what is observed with normal goods.

Substantial Performance

A legal concept indicating that a party has fulfilled enough of its contractual obligations to warrant payment, even if some minor specifications are not met.

Doctrine

A doctrine is a set of principles or beliefs, especially in legal contexts, establishing a particular rule of law or policy guidance.

Good Faith

The principle of honesty and sincerity in dealings and transactions, free of intent to deceive or defraud.