Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers than managing and sustaining a single product. the costs of these resources can be accurately allocated to products on the basis of direct labor-hours.
a) true
b) false
Correct option is B.
The given statement is False.
Explanation:
Overseeing and continuing this item decent variety requires a lot progressively overhead assets, for example, production schedulers and production design engineers, and may of these overhead assets have no conspicuous association with direct work.
This statement is false.
Explanation:
Overhead allocation is used to distribute resources indirect costs to revenue-producing projects. You can calculate overhead allocation by adding indirect labor and expenses. Thus, you can not just use activity-based costing to calculate overhead allocation.