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Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.
Predetermined Overhead Rate
The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.
Machine-Hours
A measure of production time, indicating the total hours that machines have been operating during a given period.
Fixed Manufacturing Overhead
The total of all costs that remain constant regardless of the level of production within a certain range.
Machining Department
A division within a manufacturing facility where machining processes such as cutting, drilling, or shaping are performed.
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