In the Single Period Inventory Model, the Probability Distribution for Customer

question 18

Multiple Choice

In the single period inventory model, the probability distribution for customer demand:

• A)must be discrete.
• B)is directly derived from sales data.
• C)may be continuous.
• D)is generally assumed to be uniform.

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Definitions:

Plantwide Factory Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory to allocate indirect costs to products uniformly.

Budgeted Factory Overhead

An estimate of the total indirect manufacturing costs that will be incurred to support operations during a specified period.

Plantwide Allocation Base

A single cost driver used throughout an entire plant or facility to allocate overhead costs to different products or cost objects.

Product Costing

Determining the cost of a product.