Provided a single allocation base is used, jobs are typically overcosted if
A)jobs consume proportionately less of the indirect activity but is reported to have higher cost.
B)jobs require more employees.
C)jobs consume proportionately more of the indirect activity and is reported to have higher cost.
D)jobs consume proportionately more of the indirect activity but is reported to have lower cost.
E)jobs cannot be overcosted; only products or service can be overcosted.

Question

Quizplus · Accepted Answer

When a single allocation base is used, jobs that consume proportionately less of the indirect activity but are reported to have higher costs are typically overcosted because the allocation does not accurately reflect the actual resource consumption.

Provided a Single Allocation Base Is Used, Jobs Are Typically