A Company Has a Standard Cost System in Which Fixed

question 54

True/False

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity has no effect on the variable portion of the predetermined overhead rate.

---

Definitions:

Syllogism Form

A logical argument that applies deductive reasoning to arrive at a conclusion based on two or more premises that are asserted to be true.

Syllogism Validity

The property of a syllogism whereby if the premises are true, the conclusion cannot logically be false.

Enthymeme

A syllogism or form of reasoning in which one of the premises is implicit or assumed rather than stated.

Missing Premise

a logical gap in an argument where an unstated or implied premise is necessary for the argument to hold.