Which Business Product Classification Is Most Appropriate for the Wire

question 12

Multiple Choice

Which business product classification is most appropriate for the wire used inside a stereo system?

• A) Raw material
• B) Major equipment
• C) Accessory equipment
• D) Component part
• E) Process material

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Definitions:

Activity Rates

Metrics used in activity-based costing to allocate costs to products or services, based on activities that drive costs instead of traditional cost drivers like direct labor hours.

Factory Overhead Budget

A factory overhead budget estimates the total costs of all indirect manufacturing expenses expected during a specific period.

Direct Labor Hours

The total time workers spend directly manufacturing a product or providing a service, used in costing and operational efficiency analysis.

Fabrication Department

A division within a manufacturing facility where raw materials are assembled or processed into finished goods.