Materials Requisitions Are

question 67

Multiple Choice

Materials requisitions are:

• A) not used in process costing.
• B) generally used more frequently in process costing than job order costing.
• C) generally used less frequently in process costing than job order costing.
• D) used more frequently by latter stage production departments.

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Definitions:

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to each unit of production, representing the number of hours a machine is operated.

Batches

Quantities of goods or materials processed or produced at one time during manufacturing.

Overhead Cost

Indirect expenses related to manufacturing or production, which are not directly tied to a specific product, such as rent, utilities, and salaries of managers.

Activity Rates

are used in activity-based costing to allocate costs to products or services based on specific activities requiring the costs, like inspection or setup.