What Term Is Commonly Used to Describe the Concept Whereby

question 132

Multiple Choice

What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost,direct labor cost,and variable factory overhead cost?

• A) Absorption costing
• B) Differential costing
• C) Standard costing
• D) Variable costing

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Definitions:

MTBF

Mean Time Between Failures; a reliability measure of the average time a product or system operates before failing.

Component Reliability

The probability that an individual part or component of a system performs its intended function under specified conditions for a designated period of time.

Preventive Maintenance

Regular and systematic inspection, cleaning, and replacement of worn parts, materials, and systems to prevent sudden failure and downtime.

Breakdown Maintenance

Maintenance work performed after a machine or system fails to restore it to operational condition.