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    Business
  3. Study Set
    Cost Accounting Foundations and Evolutions
  4. Exam
    Exam 4: Activity-Based Management and Activity-Based Costing
  5. Question
    Traditionally,overhead Has Been Assigned Based on Direct Labor Hours or Machine
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Traditionally,overhead Has Been Assigned Based on Direct Labor Hours or Machine

Question 122

Question 122

Multiple Choice

Traditionally,overhead has been assigned based on direct labor hours or machine hours.What effect does this have on the cost of a high-volume item?


A) over-costs the product
B) under-costs the product
C) has no effect the product cost
D) cost per unit is unaffected by product volume

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