Due to Changes That Are Occurring in the Basic Operations

Multiple Choice

Due to changes that are occurring in the basic operations of many firms, all of the following represent trends in the way indirect costs are allocated except:

A) Using several machine cost pools to measure product costs on the basis of time in a machine center.
B) Preferring facility-wide application rates that are applied to machine hours rather than incurring the cost of detailed allocations.
C) Using throughput time as an application base to increase awareness of the costs associated with lengthened throughput time.
D) Treating direct labor as an indirect manufacturing cost in an automated factory.
E) Incorporate a value chain analysis as a continuous process of gathering, evaluating, and communicating information for business decision making.