An Activity Base Is Said to Be a "Driver" of Overhead

question 26

Multiple Choice

An activity base is said to be a "driver" of overhead costs when the activity base:

• A)Is independent of the amount of overhead cost incurred.
• B)Results in an overhead application rate greater than 100%.
• C)Is a causal factor in the amount of overhead cost incurred.
• D)Is the largest of the various types of expenditures classified as manufacturing overhead.

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Definitions:

Appendicular Skeleton

The portion of the skeleton consisting of the upper limbs and the lower limbs and their girdles.

Synovial Joints

Highly movable joints surrounded by a fluid-filled capsule, allowing for smooth movement between bones.

Cartilaginous

Relating to a type of flexible connective tissue found in various parts of the body, such as joints and respiratory structures.

Fibrous

Composed of or characterized by the presence of fibers.