A Person Authorized to Execute All Regular Transactions Connected with a Business

question 317

Multiple Choice

A person authorized to execute all regular transactions connected with a business is called a:

• A) universal agent
• B) special agent
• C) gratuitous agent
• D) subagent
• E) none of the other choices

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Definitions:

Factory Overhead Rate Method

This method allocates indirect manufacturing costs based on a predetermined rate to products or job orders.

Allocation Base

A measure or quantity, such as labor hours or machine hours, used to assign costs to activities or objects.

Machine Hours

A measure of the total time machines are operational within a specific period, often used in activity-based costing or allocation.

Factory Overhead Rate

A calculation used to allocate manufacturing overhead costs to individual units of production, based on a certain base such as labor hours or machine hours.