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Assume that managers are rewarded for reducing product costs as calculated by the accounting system. In keeping with the theme that "you get what you measure,” if a company switches its overhead application basis from machine hours to direct labor hours, what would you expect to happen?

A. Direct labor hours will decrease

B. Machine hours will increase

C. Total costs will increase

D. Output will reduce

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91525677

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