In a Department Store, the Men's Clothing Section Would Be

question 63

Multiple Choice

In a department store, the men's clothing section would be a(n) :

• A) profit center.
• B) direct expense.
• C) cost center.
• D) indirect expense.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, based on estimated costs and activity levels.

Applied Overhead

Costs related to production that are not directly tied to a specific product but allocated based on a formula or measure.

Machine Hours

A measure of the actual operating time of a machine or piece of equipment, used for costing and manufacturing planning purposes.

Direct Labor

The cost of wages for employees directly involved in the manufacturing or production of goods or services.