Production Occurs at Service Organizations Just as It Does at Manufacturing

question 89

Multiple Choice

Production occurs at service organizations just as it does at manufacturing organizations.What is the final product called at a hospital?

• A)doctor appointments
• B)doctor scheduling
• C)health plans
• D)health care
• E)doctor orders

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Definitions:

Plantwide Predetermined Overhead

An overhead rate calculated for an entire manufacturing plant, applied to all products regardless of the specific department in which they were produced.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the manufacturing process.

Mark Up

The percentage added to the cost price of goods to cover overhead and profit.

Direct Labor-Hours

This refers to the total number of hours worked by employees who are directly involved in the production of goods or services.