Chris Is a Member of the Carpenters' Union Who Recently

question 269

Multiple Choice

Chris is a member of the carpenters' union who recently achieved the classification of journeyman. This means that Chris:

• A) is a contingent worker.
• B) passed a written exam, but is still working to learn the basic skills needed to be a carpenter.
• C) has successfully completed his apprenticeship program.
• D) is an apprentice and still on the journey of becoming a certified professional carpenter.

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Definitions:

Activity Rate

A ratio used to allocate costs to products or services based on the activities that are required to produce them.

Cost Pool

A grouping of individual costs in accounting, typically by department or service center, from which costs are allocated to products or services based on a relevant allocation base.

Overhead Costs

Expenses associated with the day-to-day running of a business that are not directly linked to the production or selling of goods and services.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product’s cost.