Which of the Following Items Would Be Associated with Both

question 189

Multiple Choice

Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?

• A) Overhead is assigned on a plant-wide rate based on direct labor hours.
• B) Customer service costs are assigned to products using number of complaints as the activity driver.
• C) Direct labor cost is assigned to products using direct tracing.
• D) None of these.

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Definitions:

Causal Relationship

A relationship where one event (the cause) directly leads to the occurrence of another event (the effect).

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together.

Correlational Study

A type of research method that examines the relationship between two or more variables without determining causality.

Variables

elements, features, or factors that are liable to vary or change within a research or experimental design.