A job that shows low profitability may be the result of all of the following except:
A)inefficient use of direct materials.
B)inefficient direct manufacturing labor.
C)overpricing the job.
D)over-allocating overhead costs.

Question

Quizplus · Accepted Answer

Overpricing the job would result in high profitability, not low profitability. The other options (inefficient use of direct materials, inefficient direct manufacturing labor, over-allocating overhead costs) are all possible reasons for low profitability.

A Job That Shows Low Profitability May Be the Result