ch4 fin

ACC Which of the following statements are true? Multiple select question. On an economywide basis, direct labor and overhead costs have been moving in opposite directions for a long time. Most companies throughout the world have moved away from using direct labor hours or machine hours to allocate overhead. Reason: Despite the fact that it often leads to product cost distortion, most companies continue to use these allocation bases. Technology has made more complex costing systems less expensive to develop and maintain. Product diversity has reduced, leading to a decrease in the demand for overhead resources such as production schedulers and product design engineers.

On an economywide basis, direct labor and overhead costs have been moving in opposite directions for a long time. Technology has made more complex costing systems less expensive to develop and maintain.

ACC When cost systems were developed in the 1800's, most companies ______. Multiple select question. assigned overhead based on machine hours Reason: Most companies used labor hours. produced a small number of similar products Reason: This is one reason a more elaborate system of overhead assignment was not needed believed there was little correlation between labor hours and overhead Reason: The opposite is true. focused on simplicity

produced a small number of similar products focused on simplicity