In a _____ System, Decisions Are Automated, with Exceptions Dealt

question 47

Multiple Choice

In a _____ system, decisions are automated, with exceptions dealt with manually.

• A)transaction processing
• B)routine decision making
• C)strategic decision making
• D)decision support
• E)None of these answers.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or job orders, based on a pre-established formula or basis.

Fixed Manufacturing Overhead

Regular, static expenses associated with operating a manufacturing facility, such as rent, utilities, and salaries, that do not vary with the level of production.

Direct Labor-hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process, used as a measure for allocating labor costs to products.

Predetermined Overhead Rate

The rate estimated at the beginning of a period to allocate overhead to products or job orders, calculated based on expected overhead costs and an allocation base.