A Paint Company Mixes Ten Different Base Colors into 3,000

question 118

Multiple Choice

A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors their bills of material are classified as

• A) Phantom
• B) Planning
• C) Modular
• D) Low-Level
• E) A and B

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Definitions:

Machine-Hour

A unit of measure indicating the operating time of a machine, used in costing to allocate expenses based on machine use.

Overhead Applied

The allocation of indirect costs to specific products or cost objects based on predetermined overhead rates.

Customizing Department

A department within a manufacturing or service firm dedicated to modifying products or services according to customer specifications.

Job T898

A specific reference or identifier for a job or order within a job-order costing system, used for tracking costs and production progress.