What Might Be Included in Building a Case for "Appropriate

question 120

Essay

What might be included in building a case for "appropriate" P/E ratios in the currently high stock markets?

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Definitions:

Machine Hours

A measure of the time a machine is in operation, used in cost accounting to allocate machine costs to products.

Overhead Applied

The allocation of estimated overhead costs to specific jobs or production units during an accounting period.

Direct Labor Cost

The wages and related benefits of employees who are directly involved in the production of goods or services.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities and salaries for non-direct labor.