____ are often allocated based on total machine hours or total labor hours.
A) Direct costs
B) Plant costs
C) Overhead costs
D) Manmade costs

Question

Quizplus · Accepted Answer

Overhead costs are indirect costs that are not directly attributed to a specific product or service, but are necessary for the production process. They are often allocated based on a predetermined rate per machine hour or labor hour. Direct costs, on the other hand, are costs that can be directly traced to a specific product or service, such as raw materials or direct labor. Plant costs and manmade costs are not commonly used terms in cost allocation methods.

____ Are Often Allocated Based on Total Machine Hours or Total