Value Can Be Created By

question 52

Multiple Choice

Value can be created by:

• A)Production
• B)Acquiring, turning around and selling off divisions or units
• C)Commerce
• D)Production and Commerce, or where appropriate by Commerce alone.

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Definitions:

Forming Department

A specific section within a production facility where raw materials are shaped or configured into their product form.

Overhead Applied

The portion of estimated overhead costs allocated to individual products or job orders based on a predetermined rate or method.

Departments

Organizational units within a company, each specializing in a particular area of operation.

Departmental Predetermined Overhead Rates

Overhead rates set for specific departments based on estimated costs and activities, used to allocate overhead costs more accurately to products.