A Primary Driver of Overhead Costs in Continuous Manufacturing Operations

question 112

Multiple Choice

A primary driver of overhead costs in continuous manufacturing operations is:

• A) direct labor dollars.
• B) direct labor hours.
• C) machine hours.
• D) machine maintenance dollars.

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Definitions:

Cost of Goods Sold

The expenses directly linked to manufacturing the products a company sells, encompassing both the price of materials and the labor expenses directly involved in product creation.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Spreadsheet

A digital tool allowing users to organize, analyze, and store data in tabular form, often used for financial calculation and management.

Job-Order Costing

An accounting method used to track the costs associated with producing specific jobs or batches, assigning material, labor, and overhead costs to each job separately.