The Primary Change Required to Convert to Making Pipe Out

question 39

Multiple Choice

The primary change required to convert to making pipe out of plastic rather than steel or copper is in the area of

• A) information systems.
• B) work process.
• C) work sequences.
• D) control systems.
• E) enterprise resource planning.

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Definitions:

Normal Cost System

A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.

Job Cost Sheet

A document that records the materials, labor, and manufacturing overhead costs assigned to each individual job in production.

Predetermined Overhead Rate

An established cost allocation rate that assigns expected indirect costs to products or services based on a chosen activity base.

Level of Activity

The volume or scale of operation in a business, often influencing costs and efficiency, such as the number of units produced or sold.