Cost-Benefit Techniques Enable Evaluators to Put a True Dollar Value

question 8

True/False

Cost-benefit techniques enable evaluators to put a true dollar value on all possible program costs and benefits, without respect to vested interests and value judgments.​

---

Definitions:

Predetermined Overhead Rates

Rates used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated overhead costs and activity levels.

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to products or services according to the actual consumption of each.

Expected Activity

This term refers to the estimated level of operations or production expected to be achieved in a future period.

Overhead Cost

Expenses related to the operation of a business that cannot be directly tied to a specific product or service.