Which of the Following Statements About the Use of Direct

question 13

Multiple Choice

Which of the following statements about the use of direct labor as a cost driver is false?

• A) Direct labor is the most commonly used cost driver when calculating a predetermined overhead rate.
• B) Direct labor is gaining importance in many manufacturing applications with respect to being a significant cost driver.
• C) Direct labor is an inappropriate cost driver to use if a company is highly automated.
• D) If direct labor is a good cost driver, increases in direct labor are matched with increases in manufacturing overhead.
• E) Companies can use either direct labor cost or direct labor hours as a cost driver.

Interpret the significance and allocation efficiency within the production possibilities curve.

Recognize the factors that shift the production possibilities curve outward indicating economic development.

Grasp the basic concept of opportunity cost and its practical implications in decision making.

Identify the role of unemployment in an economy's production possibilities.

---

Definitions:

Job Opportunities

Various positions of employment available to job seekers, offering a chance for career advancement or change.

Prospecting Job Application Letter

A written document sent to potential employers expressing interest in a position and highlighting qualifications, often when no job has been advertised.

Reader's Attention

The focus or interest of readers, critical for engaging them with written content.

First Paragraph

The initial section of a written document or article which introduces the topic or main idea.