According to the Principle of Diffusion of Responsibility, the _____

question 32

Multiple Choice

According to the principle of diffusion of responsibility, the _____ bystanders to an incident that there are, the _____ likely people are to help.

• A) fewer; less
• B) fewer; more
• C) more; more
• D) better armed; more

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Definitions:

Direct Labor-Hours

The total number of labor hours spent on the production of goods or services.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, based on the estimated overhead costs and estimated level of activity, used to apply overhead costs to products.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of resources.

Traditional System

A cost accounting system that allocates overhead based on a single or few measures of activity, such as direct labor hours or machine hours.