Currently, Manufacturing Accounts for Only Around 70% of U

question 34

True/False

Currently, manufacturing accounts for only around 70% of U.S. GDP.

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Definitions:

Variable Manufacturing Overhead

Costs that vary directly with the level of production output and are a part of the total manufacturing overhead.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as salaries of supervisory staff and rent.

Job-Order Costing System

A costing method that accumulates costs per job rather than process, suitable for firms that produce goods to specific customer orders.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders based on a selected activity base.