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Companies today are increasingly shifting from a hierarchical control process to one that is more decentralized.
Predetermined Overhead Rate
A rate calculated before the year begins, used to allocate estimated overhead costs to products based on a chosen activity base.
Machine-Hours
The total number of hours that a machine is in operation, used as a basis for allocating manufacturing overhead costs related to machinery.
Job-Order Costing
A cost accounting system that accumulates costs for each distinct job or batch, used in situations where products or services are distinctly customizable.
Selling Price
The amount of money charged for a product or service, or the sum for which something is sold on the market.
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