The Rate Established Prior to the Beginning of a Period

question 65

Multiple Choice

The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor,and that is used to assign overhead cost to jobs,is the:

• A)Predetermined overhead rate.
• B)Overhead variance rate.
• C)Estimated labor cost rate.
• D)Chargeable overhead rate.
• E)Miscellaneous overhead rate.

---

Definitions:

EPS

Earnings Per Share, a key indicator of a company's profitability, calculated as the company's profit divided by the number of outstanding shares.

Rate of Return

The appreciation or depreciation in an investment's value over a set period, articulated as a percentage of the investment's buying price.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributable to each share of common stock.