A business unit's use of the actual overhead services may stay constant, even if it can reduce direct labor costs.

Name: A business unit's use of the actual overhead services may stay constant, even if it can reduce direct labor costs.
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Question

Quizplus · Accepted Answer

Reducing direct labor costs does not necessarily affect the volume of overhead services a business unit consumes, as overhead costs are often related to factors independent of direct labor, such as utilities, rent, and equipment depreciation.

A Business Unit's Use of the Actual Overhead Services May