Some Firms Use a Combination of Departmentalization Techniques

question 113

True/False

Some firms use a combination of departmentalization techniques.

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Definitions:

Plantwide Predetermined

A single predetermined overhead rate that is applied throughout an entire plant or manufacturing facility.

Machine-Hours

A measure of the amount of time that a machine is operated, used as a basis for allocating manufacturing overhead costs in traditional costing systems.

Manufacturing Departments

Divisions within a manufacturing facility, each specializing in different aspects of the production process.

Job-Order Costing System

A costing method that accumulates manufacturing costs separately for each job.