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Sireus Corp

question 71

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Sireus Corp. has availed a cloud-based service. As this service provides hardware and operating systems, Sireus Corp. can easily install its software on this cloud product. Which of the following services has the company availed from its cloud vendor?


Definitions:

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period to allocate overhead costs to products or services based on a relevant activity base.

Variable Manufacturing Overhead

Costs that vary with the level of production output and may include items such as utility expenses and raw materials.

Direct Labor-Hours

Total time spent by staff members who are directly part of the manufacturing operations.

Fixed Manufacturing Overhead

Fixed manufacturing overhead includes regular, consistent costs involved in manufacturing that do not vary with the level of production, such as salaries of managers and factory rent.

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