Managers Need an Understanding of Statistics to Be Able to Present

question 32

True/False

Managers need an understanding of statistics to be able to present and describe information accurately,draw conclusions about large populations based on small samples,improve processes,and make reliable forecasts.

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Definitions:

Underapplied Manufacturing Overhead

An occurrence where the overhead expenses budgeted for manufacturing fall short of the overhead costs that were truly incurred.

Allocation

The process of assigning indirect costs to specific cost objects, such as products or departments.

Journal Entry

A record in accounting that logs a transaction and shows the affected accounts in debit and credit form.

Predetermined Overhead Rate

A rate used to allocate estimated manufacturing overhead costs to individual units of production, based on a particular activity base.