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If a business owner continues for years to hire people who have Harvard degrees, never realizing that he would have done better if he had hired a brilliant summa cum laude from a local university who he didn't bother to interview, what is the business owner exhibiting?
Finished Goods Inventory
Inventory items that have completed the manufacturing process and are ready for sale.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate estimated overhead costs to cost objects based on a chosen activity base.
Direct Labor-Hours
The total hours worked by employees who are directly involved in the manufacturing process.
Manufacturing Overhead
All indirect costs associated with the production process, such as utilities, maintenance, and factory management salaries, excluding direct materials and direct labor costs.
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