Table 3-2 ​

question 165

Multiple Choice

Table 3-2 ​
-The concept of opportunity cost can be represented graphically by the

• A)area inside the production possibilities frontier.
• B)slope of the production possibilities frontier.
• C)vertical distance from the horizontal axis to the production possibilities frontier.
• D)horizontal distance from the vertical axis to the production possibilities frontier.
• E)sum of the horizontal and vertical distances to the production possibilities frontier.

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Definitions:

Departmental Predetermined

Departmental predetermined refers to the allocated overhead rates established beforehand for specific departments within a company, aiding in more accurate departmental costing and budgeting.

Overhead Rate

The amount of indirect costs allocated to cost objects, calculated by dividing total overhead costs by an allocation base.

Machine-Hours

A gauge of output or activity in production, measured by the operating hours of machinery.

Manufacturing Departments

Specific areas within a manufacturing facility where distinct processes or tasks are carried out in the production of goods.