Which of the Following Is an Example of a Hedging

question 120

Multiple Choice

Which of the following is an example of a hedging sentence?

• A)The employee's performance appears to be less than satisfactory.
• B)The deadline is next Tuesday.
• C)The financial statement needs to have two sections.
• D)None of the above are hedging.

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Definitions:

Predetermined Overhead Rate

A calculated rate used to assign overhead costs to products or services, based on estimated costs and activity levels.

Machine-Hours

The total time that machines are running in a production process, often used as a basis for allocating manufacturing overhead costs.

Job-Order Costing System

An accounting method that tracks costs individually for each job, suitable for companies producing unique or custom products.

Predetermined Overhead Rate

A rate calculated before the manufacturing process begins, used to allocate manufacturing overhead costs to individual units of production based on a certain basis (e.g., machine hours or labor hours).