_____________ Is Calculated by Taking the Quantity of Everything That

question 5

Multiple Choice

_____________ is calculated by taking the quantity of everything that is sold and multiplying it by the sale price.

• A) Total revenue
• B) Total profits
• C) Average profit margin
• D) Total cost

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Definitions:

Machine-Hours

A measure of production time, tracking how many hours machines are operating in the manufacturing process.

Predetermined Overhead Rate

This rate is calculated before the period begins and is used to apply manufacturing overhead costs to products based on a consistent formula.

Fixed Manufacturing Overhead

Costs in manufacturing that do not vary with the level of production, including factory rent, salaries of permanent staff, and equipment depreciation.

Machine-Hours

A measure of the amount of time machines are operated in the manufacturing process, used as a basis for allocating costs.