When Developing a Budget,both Direct and Indirect Costs Need to Be

question 55

Multiple Choice

When developing a budget,both direct and indirect costs need to be determined.An example of an indirect cost of a program might be

• A) salaries.
• B) travel costs.
• C) equipment costs.
• D) utilities.

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Definitions:

Machine-Hours

A measure of production or work activity based on the number of hours machines are operated in the manufacturing process.

Estimated Total Overhead

The anticipated amount of all overhead expenses for a specific period, used for budgeting and costing purposes.

Machining Department

A specific division within a manufacturing facility where machinery is used to process materials into finished products.

Manufacturing Overhead

All indirect costs associated with the production process of a company, such as utilities, depreciation, and salaries for management.