Indicate Whether Each of the Following Statements Is True or False.Volume

question 76

Short Answer

Indicate whether each of the following statements is true or false.Volume measures include number of labor hours, quantity of direct materials used, and number of units sold.A variable overhead cost should be allocated to cost objects using a volume measure as the allocation base.A causal relationship exists between a fixed overhead cost and the volume of production.The allocation base used by a manufacturer to allocate overhead costs may affect the apparent profitability of the various products the company makes.Fixed indirect costs are often allocated using arbitrary allocation bases.

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Definitions:

Planning Improves

The process of making plans helps to enhance effectiveness and efficiency by providing direction and reducing uncertainty.

Action Orientation

A personality trait or behavior characterized by proactive decision-making and initiative-taking in facing tasks or challenges.

Coordination

The act of organizing and aligning different elements or activities of an organization to ensure they work together effectively towards a common goal.

One-time Activities

One-time activities refer to tasks or events that occur only once and are not repeated, often used in project planning and management.