The IHIP Characteristics Refers to Services That Are

question 90

Multiple Choice

The IHIP characteristics refers to services that are:

• A) intangible, heterogeneous, inseparable and performance based.
• B) ineffective, heterogeneous, inseparable and performance based.
• C) intangible, homogeneous, inseparable and performance based.
• D) ineffective, homogeneous, inseparable and perishable.
• E) intangible, heterogeneous, inseparable and perishable.

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Definitions:

Process Cost System

An accounting system used to accumulate costs in industries where a homogeneous product is produced continuously in a mass production environment.

Predetermined Overhead Rate

A rate used to assign manufacturing overhead costs to products or job orders, calculated before the costs are incurred, based on estimated overhead and activity levels.

Machine Hours

A measure of the amount of time a machine is in operation, often used in the calculation of manufacturing costs and overhead allocation.

Job Order Costing System

A job order costing system tracks costs for each individual job or batch of goods produced, assigning specific materials, labor, and overhead costs to each.