Charles Wants to Prevent Problems Before Their Occurrence

question 90

Multiple Choice

Charles wants to prevent problems before their occurrence.Which of the following is the most desirable type of control to achieve this goal?

• A) reactive control
• B) concurrent control
• C) feedforward control
• D) feedback control

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Definitions:

Predetermined Overhead Rate

The predetermined overhead rate is calculated before a period begins and is used to estimate the manufacturing overhead cost to be allocated to individual units of production.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs related to maintenance, utilities, and equipment depreciation.

Direct Labor-Hours

A measure of the time workers or employees directly spend producing goods or performing services.

Predetermined Overhead Rate

Calculated before the period begins, this rate is used to assign overhead costs to products or job orders based on an activity base.