As Manufacturing Overhead Costs Cannot Be Traced to Products a Method

question 47

Multiple Choice

As manufacturing overhead costs cannot be traced to products a method must be developed for assigning them to products. Common bases for assignment are all of the following except:

• A) direct labour cost.
• B) direct labour hours.
• C) machine hours.
• D) direct labour hours plus direct machine hours.

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Definitions:

High Returns

Investments or financial assets that yield a significantly higher than average rate of return or profit.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Low Risk Assets

Financial assets that are deemed to carry a low chance of losing value, typically offering lower potential returns.

High Risk Assets

Investments that offer the potential for higher returns but come with a greater possibility of loss.