An Item Purchased Often by the Same Buyer Is Known

question 126

Multiple Choice

An item purchased often by the same buyer is known as a

• A) frequent transaction good.
• B) repeat-purchase item.
• C) free rider good.
• D) public good.

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Definitions:

Actual Overhead

The real, incurred overhead costs within a specific accounting period, as opposed to budgeted or standard overhead costs.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production, based on a chosen activity base.

Manufacturing Overhead Cost

Every cost linked to the production process that is not direct materials or direct labor expenses.

Employee Time Ticket

A record that details the amount of time an employee spends on different tasks or projects, used for payroll or costing purposes.