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.

Question

Quizplus · Accepted Answer

Facility-wide application rates applied to machine hours are less precise and do not reflect the trend towards more detailed and accurate allocation of indirect costs.

Due to Changes That Are Occurring in the Basic Operations