Given Below Is the Scatter Plot of the Number of Employees

question 101

True/False

Given below is the scatter plot of the number of employees and the total revenue ($millions)of 20 U.S.companies.Companies that have higher numbers of employees appear to also have higher total revenue.

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Definitions:

Predetermined Overhead Allocation Rate

A calculated rate used to apply manufacturing overhead costs to specific jobs or production units based on estimated costs and activities.

Direct Labor Cost

The expense incurred by companies for wages, benefits, and other costs directly associated with the employment of workers who physically produce a product or service.

Equivalent Finished Units

A calculation in cost accounting that converts partially completed goods into a number of complete units for inventory costing purposes.

Direct Labor

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