The cost allocation base used by an operating manager is classified as ____________?
Correct answer: C. machine hours
- A. variable hours
- B. flexible hours
- C. machine hours
- D. fixed hours
Explanation
Machine hours are a common cost-allocation base when machine use drives overhead consumption. Flexible, variable and fixed hours are not standard classifications of an allocation base.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as __________?
An energy, machine maintenance, indirect materials and engineering support are considered as ____________?
In the standard costing, the standard quantity allocation is multiplied to standard overhead rates for allocating __________?
The costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as ______________?
The flexible budget amount is added in to variable overhead flexible budget variance to calculate ____________?
The depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a _____________?