What Is the Distinction Between a Minor Breach and a Major

question 58

Essay

What is the distinction between a minor breach and a major breach?

---

Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on a predetermined formula before the accounting period begins.

Machine-Hours

A measurement of production time, representing hours a machine is operated within a given period.

Predetermined Overhead Rate

This rate is used to allocate manufacturing overhead costs to products or job orders based on a set formula, typically involving estimated costs and an allocation base like machine hours or labor hours.