Places Where Large Shipments of the Same Items Are Broken

question 9

Multiple Choice

Places where large shipments of the same items are broken out and separated to go to separate locations are known as

• A)consolidation warehousing.
• B)cross docking.
• C)break bulk facilities.
• D)hub and spoke system.

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.

Machine-Hours

A measure of the amount of time machines are run in the production process, used in allocating costs to products.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.