The Symbol ⇒ Indicates What Type of Activity in a Process

question 5

Multiple Choice

The symbol ⇒ indicates what type of activity in a process?

• A)Operation
• B)Transportation
• C)Delay
• D)Storage

---

Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that remain constant regardless of the level of production, such as salaries of management and rent of the facility.

Absorption Costing

A costing method that includes all manufacturing costs, both fixed and variable, in the cost of goods sold.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual products based on a certain activity base.

Normal Cost System

A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.