If Employees Are Bonded

question 91

Multiple Choice

If employees are bonded

• A) it means that they are not allowed to handle cash.
• B) they have worked for the company for at least 10 years.
• C) they have been insured against misappropriation of assets.
• D) it is impossible for them to steal from the company.

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant to allocate overhead costs to production activities.

Machine Hours

A measure of production time, calculated as the total number of hours machines are operated in the production process.

Overhead Assigned

The process of allocating indirect costs, such as utilities or rent, to specific products or departments within a company.

Allocation Base

a criterion or measure used for distributing costs evenly across various departments or products.