Which of the Following Statements Is True with Respect to Cost

question 4

Multiple Choice

Which of the following statements is true with respect to cost drivers?

• A) Overhead costs should only have one cost driver.
• B) In labor intensive companies, direct labor hours often serves as the cost driver.
• C) When using a cost driver, the same amount of overhead will be allocated to all products.
• D) Cost drivers are only used to allocate machine hours.

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Definitions:

Body Fat

The portion of a person's body mass made up of fat tissues as compared to lean body mass.

Bins

In the context of histograms, bins are intervals used to divide the entire range of values into a series of intervals to count the number of values that fall into each interval.

Bimodal

A distribution with two different modes (peaks) where the data shows two prevalent values.

Skewed

A distribution that is not symmetrical, where the bulk of values are concentrated to one side of the mean.