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Which one of the following statements is not one of three conditions that must exist in order for it to make sense for a firm to move from a base of direct labor of direct labor hours to a base of direct labor cost in order to apply overhead?

A. The firm’s products must be similar in total cost.

B. The firm’s workers must not all be paid the same amount.

C. A positive relationship must exist between higher paid workers and the level of manufacturing overhead.

D. The firm’s products must use different percentages of the different wage scales.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92274469

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