The Direct Computer-To-Computer Exchange of Standard Business Documents Is Known

question 24

Multiple Choice

The direct computer-to-computer exchange of standard business documents is known as:

• A)MRP
• B)e-mail
• C)EDI
• D)DDS

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total direct labor hours or machine hours, applied company-wide.

Overhead Allocations

The process of distributing indirect costs (overheads) across various cost objects, such as products or departments, based on predetermined criteria.

Departmental Overhead Rates

Overhead allocation rates used that vary by department within a company, recognizing that different departments incur different amounts of overhead costs.

Direct Labor Hours

The total hours worked by employees who are directly involved in the production of goods or services.