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Which of the Following Would Be the Least Appropriate Allocation

Question 78

Multiple Choice

Which of the following would be the least appropriate allocation base for allocating overhead in a highly automated (i.e. ,capital-intensive) manufacturing company?


A) Electricity used.
B) Machine hours.
C) Direct labor hours.
D) Material consumeD.
Direct labor hours would be the least related allocation base to use in an automated environment between the alternatives provideD.

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