The statement concerning cost drivers that is incorrect is:
A) As direct labour shrinks as a proportion of manufacturing costs it becomes a more accurate factor by which to apply overhead to products
B) A cost driver is a measure of the activity that causes overhead costs
C) In modern day manufacturing there has been a decline in labour costs and an increase in factory overheads as a percentage of product costs
D) Inaccurate application of overhead to products can lead to wrong conclusions about which products are profitable
Correct Answer:
Verified
Q33: Direct materials are issued to work in
Q34: The applied factory overhead is debited/credited _
Q35: The statement concerning Activity-based costing ABC)that is
Q36: It is true that Just-in-time JIT)processing:
A)Is most
Q37: Factory overhead is charged to jobs by
Q39: The control document used in job order
Q41: P_ costing is used by firms with
Q42: A_-_ costing is a system in which
Q43: E_ u_ are a measure of how
Q48: The method of calculating equivalent units where
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