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________ Serves as a Guide to the Future by Showing

question 97

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________ serves as a guide to the future by showing how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there.


Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.

Machine-Hours

A measure of the amount of time machines are run in the production process, used in allocating costs to products.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

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