Scrap Material Should Be Located ____

question 21

Multiple Choice

Scrap material should be located ____ .

• A) in a central location
• B) offsite
• C) out of sight
• D) on the perimeter of the jobsite

---

Definitions:

Fixed Overhead

Overheads that stay the same no matter the quantity produced or sold, encompassing rent, payroll, and insurance costs.

Fixed Manufacturing Overhead

Ongoing, consistent expenses associated with manufacturing operations, such as rent, salaries, and utilities, regardless of production levels.

Denominator Level

The activity level chosen to compute the predetermined overhead rate, reflecting expected or actual activity.

Machine-Hours

A measurement of the amount of time machines are run during production, often used as a basis for allocating manufacturing overhead.