This Happened in 1994

question 48

Multiple Choice

This happened in 1994.

• A)Establishment of the European Union (EU)
• B)The Trans-Pacific Partnership Agreement
• C)The North American Free Trade Agreement (NAFTA)
• D)The demise of the Soviet Union

---

Definitions:

Predetermined Overhead Rate

The rate used to assign overhead costs to products or services based on a predetermined formula.

Fixed Component

The portion of total costs that remains constant, regardless of changes in activity level.

Variable Overhead

Costs of production that vary with the level of manufacturing activity or output, such as utilities and commissions, as opposed to fixed overhead costs.

Rate Variance

The difference between the actual rate paid for inputs and the standard rate expected, often related to labor or manufacturing overhead.