For the Past 2 Years, a Majority of the Scripts

question 42

Multiple Choice

For the past 2 years, a majority of the scripts Kayley has written have been considered to be commercially undesirable, leading to poor advertisement sales. Their future as a television writer may be in jeopardy. What type of constraint is this?

• A) emotional constraint
• B) political constraint
• C) economic constraint
• D) all of these

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Definitions:

Overapplied

Refers to the condition where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead cost.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, maintenance, and factory equipment depreciation.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

Job-order Costing

A costing method used for custom orders, where costs are assigned to specific job orders, distinguishing it from batch production.