A Customer Walks into a ShipNow Location with Four Boxes

question 59

Multiple Choice

A customer walks into a ShipNow location with four boxes and a document envelope,all going to different destinations in different amounts of time with different security and notification needs.
-Although the salespeople at ShipNow are in contact almost exclusively with the customers who ship packages,who are the other primary customers of ShipNow?

• A)the accounting departments of the companies that ship with ShipNow
• B)the companies and individuals that receive the packages
• C)the ShipNow delivery drivers
• D)the billing departments of local ShipNow locations
• E)the companies that make the products that are shipped by ShipNow customers

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Definitions:

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in the process of manufacturing or in delivering services.

Predetermined Overhead Rate

The rate at which overhead costs are applied to products or services, estimated before the costs are incurred.

Departmental Predetermined

A rate calculated at the start of the accounting period, used to allocate overhead costs to products based on department-specific criteria.

Overhead Rate

A measure used to calculate how much overhead cost should be allocated to each unit of production, often based on direct labor hours or machine hours.