Mattel Has Allowed a Producer in Thailand to Manufacture and Sell

question 42

Multiple Choice

Mattel has allowed a producer in Thailand to manufacture and sell its branded dolls in overseas markets. The company in Thailand is a

• A) royalty receiver.
• B) licensor.
• C) licensee.
• D) license initiator.

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Definitions:

Manufacturing Overhead

Expenses related to the manufacturing process that are not directly attributed to individual units produced, such as maintenance and factory supervision.

Machine-Hours

A measure of the time a machine is operated, used as a basis for allocating manufacturing overhead in some costing systems.

Predetermined Overhead Rate

A calculated rate designed for allocating manufacturing overhead expenses to specific production units, based on a selected activity base.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs. These costs include indirect materials, indirect labor, and other expenses.