If There Are Several Steps in Getting the Product to Its

question 34

True/False

If there are several steps in getting the product to its final state, the company may choose to departmentalize by process.

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Definitions:

Direct Materials

Raw materials that are directly traceable and allocate to the manufacture of specific goods or products.

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Machine Hours

A measure of production output or activity level, using the total hours that machinery is operated as the unit of measure.

Machine Hours

The total running time of a machine during a specific period, often used as a basis for allocating manufacturing overhead.