A Flexible Benefit Plan Allows an Employee to Allocate a Predetermined

question 189

True/False

A flexible benefit plan allows an employee to allocate a predetermined amount of benefit dollars to various categories of benefits to design a benefit mix that best fits that employee's needs.

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Definitions:

Factory Overhead Rate

A measure used to allocate the total factory overhead costs to units produced, based on a predetermined activity base.

Plantwide Factory Overhead Rate

The plantwide factory overhead rate is a single rate used to allocate all of a plant's manufacturing overhead costs to its production activities, based on a common basis such as direct labor hours.

Overhead Rates

The rates used to allocate indirect costs to products or services, representing the proportion of overheads each product or service carries.

Allocation-Base Usage

The process of distributing costs based on a predetermined criterion or base, such as machine hours or labor costs.