A Schedule That Is Used to Ensure Accuracy in Computing

question 81

Multiple Choice

A schedule that is used to ensure accuracy in computing product costs is (are)

• A) the schedule of the cost of goods manufactured.
• B) the schedule of the cost of goods sold.
• C) the schedules of the cost of goods manufactured and cost of goods sold.
• D) the schedule of raw materials used.
• E) None of the schedules listed here.

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Definitions:

Overhead Costs

General business expenses that are not directly attributable to creating a product or service but are necessary for the business's day-to-day operations.

Plantwide Overhead Rate

A single overhead rate calculated by dividing all manufacturing overhead costs by an entity's total allocation base, typically direct labor hours or machine hours, used across an entire factory.

Machine Hours

A measure of the total time that machines are operating, used in cost accounting to allocate machine-related expenses to products.

Allocation Base

A measure or statistic used to allocate costs among different departments, products, or activities within an organization.