The Cost of Hardware, Software, and Telecommunications Services Needed to Build

question 42

Multiple Choice

The cost of hardware, software, and telecommunications services needed to build a Web site have ________ over the last decade.

• A)increased dramatically
• B)increased moderately
• C)decreased dramatically
• D)decreased slightly

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Definitions:

Predetermined Overhead Rate

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

Normal Capacity Hours

The amount of production or work hours that can be reasonably expected under normal conditions in a given period.

Overhead Variances

Differences between the actual overhead costs incurred and the overhead costs that were expected or budgeted.

Controllable Variance

The difference between actual expenses and budgeted expenses that management has the ability to influence or control.