The Substitution of Machinery That Has Sensing and Control Devices

question 23

Multiple Choice

The substitution of machinery that has sensing and control devices for human labor is best described by the term

• A)automation.
• B)feedback control.
• C)computer-aided manufacturing.
• D)computer-integrated manufacturing.
• E)flexible manufacturing system.

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Definitions:

Job-Order Costing

An accounting method used to track costs and revenues by specific jobs or orders, commonly used in industries with customized products.

Direct Labor Costs

The wages and benefits paid to workers who are directly involved in the manufacturing of products.

Cost Of Goods Manufactured

The total production cost of the goods completed and transferred out of the work-in-process inventory during a specific period.

Predetermined Overhead Rate

A rate calculated before the fiscal period begins, used to allocate projected overhead costs to products or job orders.