A Drawing That Includes the Assembly of Only a Portion

question 2

True/False

A drawing that includes the assembly of only a portion or segment of a more complex product is called a subassembly drawing.

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Definitions:

Costing System

A method for assessing and allocating costs of production, typically involving direct costs, indirect costs, and overheads.

Washing Mitt

A tool made of soft material used for washing surfaces, typically vehicles, without causing scratches.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they require.

Activity Rate

A predetermined overhead rate in activity-based costing. Each activity cost pool has its own activity rate which is used to apply overhead to products and services.