When You Put Your Spare Change into Your Child's Piggy

question 62

Multiple Choice

When you put your spare change into your child's piggy bank, money is serving as a

• A)store of value.
• B)unit of account and store of value.
• C)medium of exchange and unit of account.
• D)medium of exchange.
• E)unit of account.

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Definitions:

Machine-Hour

A unit of measure representing the operation of a machine for one hour, often used in allocating manufacturing overhead costs.

Variable Overhead

Costs of overhead that vary with the level of production activity, such as utilities for machinery or materials handling expenses.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Variable Component

The part of a cost or expense that varies directly with the level of activity or production volume, in contrast to fixed costs.