A Business That Chooses to Form a Corporation Is Legally

question 81

Multiple Choice

A business that chooses to form a corporation is legally required to have a ________.

• A)board of owners
• B)board of directors
• C)board of employees
• D)board of advisors

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Definitions:

Predetermined Overhead Rate

An estimated charge per activity unit used to assign overhead costs to products or services, calculated before the period begins.

Direct Labor-Hours

The sum of hours contributed by workers directly participating in creating goods or offering services.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the accounting period begins based on estimated costs and activity levels.