Traditionally, overhead in most service firms has been allocated to projects based on the amount of ____________ charged to complete the customer's requirements.
A) direct labor
B) fixed costs
C) time
D) number of employees
E) number of time sheet entries

Question

Quizplus · Accepted Answer

Traditionally, overhead in service firms is allocated based on direct labor because it is a significant cost driver and is easily traceable to specific projects.

Traditionally, Overhead in Most Service Firms Has Been Allocated to Projects