An Input That Is Needed to Produce a Product or to Allow

question 323

Multiple Choice

An input that is needed to produce a product or to allow a person to consume a product is

• A) an essential facility.
• B) an industry standard.
• C) interconnection.
• D) bundling.

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Definitions:

Overhead Rate

A measure used to allocate indirect costs to produced goods or services, calculated as overhead costs divided by the allocation base.

Job Order Cost System

An accounting system that accumulates costs by individual jobs when the products or services are distinguishable from each other.

Time Tickets

Documents or electronic records used to track the amount of time an employee spends on a specific job or project.

Job Cost Sheets

Documents that track the direct materials, direct labor, and manufacturing overhead for a specific job, used in job costing systems.