Listed Below Are 5 Terms Followed by a List of Phrases

question 180

Multiple Choice

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Average cost

• A)Items sold are assumed to come from a mixture of goods acquired during the period.
• B)Goods are transferred to another party but title remains with transferor.
• C)Cost of goods available for sale less ending inventory.
• D)Items sold are assumed to be those acquired first.
• E)Items sold are assumed to be those acquired last.

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Definitions:

Departmental Overhead Rate Method

The departmental overhead rate method allocates overhead costs to specific departments based on their respective operational metrics, helping in accurate product costing and profitability analysis.

Plantwide Overhead Rate

The rate calculated to allocate the total overhead costs uniformly across all products or services in a plant or factory.

Overhead Allocation Base

A measure or standard used to distribute indirect costs to various cost objects, such as products or departments, typically involving labor hours, machine hours, or cost centers.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, based on criteria such as department size or usage of overhead resources.