When Records Are No Longer Being Requested on a Regular

question 3

Multiple Choice

When records are no longer being requested on a regular basis and records storage space is limited,

• A)more storage equipment should be purchased.
• B)inactive records should be transferred to inactive records storage.
• C)inactive records should be destroyed .
• D)a records inventory is needed.

---

Definitions:

Overhead Rate

The ratio used to allocate indirect costs to products or activities, often based on labor hours, machine hours, or material costs, facilitating overhead application.

Actual Costs

The genuine costs incurred for materials, labor, and overhead in the production process or in providing a service.

Fixed Manufacturing Overhead

Costs that remain constant in total regardless of the level of production, such as salaries and rent for factory buildings.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or services, calculated before the accounting period begins based on estimated costs.