Any Idea for a New Product,service,raw Material,market or Production Process

question 23

Multiple Choice

Any idea for a new product,service,raw material,market or production process that can be successfully exploited so as to generate financial benefits for stakeholders has been viewed as constituting an opportunity. This definition of an opportunity is stated in

• A) market terms.
• B) economic terms.
• C) stakeholder terms.
• D) production terms.
• E) all of the above.

---

Definitions:

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products or job orders, based on a projected level of activity.

Direct Labor-Hours

The total number of labor hours worked by employees who are directly involved in the manufacturing process.

Job-Order Costing System

An accounting system that accumulates costs per job rather than per time period, used in industries where goods are custom-made.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity.