Direct Labour Hours or Direct Labour Dollars Are Suitable Overhead

question 60

Multiple Choice

Direct labour hours or direct labour dollars are suitable overhead allocation bases when:

• A) overhead costs are insignificant.
• B) direct labour details are readily available.
• C) direct material costs are highly correlated with direct labour hours.
• D) they have been used satisfactorily in the past.

---

Definitions:

Clarity And Control

Refers to the clear understanding and management of tasks, roles, and expectations within an organization or project to ensure efficiency and achievement of objectives.

Directive Style

A leadership approach characterized by giving clear, explicit instructions and closely supervising tasks, with a focus on task achievement and compliance.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is motivated by the desire to guide their followers on a path to achieve personal and organizational goals.

Leadership

The action of leading a group of people or an organization, often involving making decisions and setting directions.