Traditionally companies have used direct labor hours,direct labor costs and machine hours as the primary cost drivers of manufacturing overhead costs.

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Quizplus · Accepted Answer

This is a true statement. Direct labor hours, direct labor costs, and machine hours have been widely used as cost drivers for allocating manufacturing overhead costs. However, with the advancement of technology and changes in production processes, other cost drivers such as activity-based costing and throughput costing have also been adopted by some companies.

Traditionally Companies Have Used Direct Labor Hours,direct Labor Costs and Machine