Which of the Following Is an Example of How Business

question 34

Multiple Choice

Which of the following is an example of how business law guides business conduct?

• A) The law sets rules and penalties to encourage compliance.
• B) The law sets specific codes of ethics to guide conduct.
• C) The law seeks levels of compensation exceeding losses.
• D) The law limits executive compensation to guide conduct.

---

Definitions:

Predetermined Overhead Rate

A calculated rate used to assign overhead costs to products or services, based on estimated costs and activity levels.

Machine-Hours

The total time that machines are running in a production process, often used as a basis for allocating manufacturing overhead costs.

Job-Order Costing System

An accounting method that tracks costs individually for each job, suitable for companies producing unique or custom products.

Predetermined Overhead Rate

A rate calculated before the manufacturing process begins, used to allocate manufacturing overhead costs to individual units of production based on a certain basis (e.g., machine hours or labor hours).