In Order to Reach Goals of High Returns on Your

question 23

Multiple Choice

In order to reach goals of high returns on your investments, what must you generally give up?

• A) Risk
• B) Safety
• C) Stocks
• D) Money
• E) Return

---

Definitions:

Job Cost Accuracy

The precision with which a company estimates and tracks the costs associated with specific jobs or projects.

Overhead Cost Driver

A factor that causes the cost of overheads to change, such as machine hours or labor hours.

Predetermined Overhead Rate

A rate estimated before a period begins, used to allocate overhead costs to products or job orders based on a chosen activity base.

Allocation Base

A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.