If We Are Not Happy with Our Original Design Using

question 14

Multiple Choice

If we are not happy with our original design using a(n) ____, we only need to change some numerical parameters and rerun the model.

• A)physical model
• B)simulation
• C)virtual model
• D)equation

---

Definitions:

Departmental Overhead Rate

A method for allocating overhead costs to specific departments based on relevant activity drivers, aiding in more accurate cost assessment.

Machine Hours

A measure of production time, calculated by the number of hours a machine operates within a given period.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or delivering a service.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.