Which of the Following Would Probably Be the Least Appropriate

question 134

Multiple Choice

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

• A)Machine-hours
• B)Power consumption
• C)Direct labor-hours
• D)Machine setups

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Definitions:

Dominance of Markets

A situation where one or few entities exert a disproportionate control over the sales, distribution, or characteristics of goods and services in a market.

Industrial Regulation

The imposition of rules by the government on firms and industries to promote competition, control monopoly power, protect consumers, and regulate prices and service quality.

Production Costs

Expenses incurred in the process of manufacturing or producing goods, including materials, labor, and overhead costs.