Which of the following statements is true with respect to cost drivers?
A) Overhead costs should only have one cost driver.
B) In labor intensive companies, direct labor hours often serves as the cost driver.
C) When using a cost driver, the same amount of overhead will be allocated to all products.
D) Cost drivers are only used to allocate machine hours.
B
You might also like to view...
When a bond is sold between coupon payment dates, the buyer pays the seller for the _____, which is the prorated share of the upcoming coupon payment.
A. accrued interest B. prepaid interest C. bond premium D. bond discount E. discount
Not all recognizable events are supported by a standard source document
a. True b. False Indicate whether the statement is true or false
When considering whether to move the project to its optimum cost-time position, the manager should also consider ________.
Fill in the blank(s) with the appropriate word(s).
A characteristic necessary for competitive advantage is the ability to ______.
A. give orders to employees B. operate without attracting investment C. add value to resources D. develop international contacts