________ Is the Potential to Increase Production by Expanding or Replicating

question 89

Multiple Choice

________ is the potential to increase production by expanding or replicating its initial production capacity.

• A) Perishability
• B) separability
• C) Serviceability
• D) Scalability
• E) Capacity

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a chosen activity base.

Machine-Hours

A unit of measure representing the operational use time of a machine, commonly used in allocating manufacturing overhead costs in product costing.

Manufacturing Overhead

All indirect costs associated with the production process, including costs of indirect materials, indirect labor, and other indirect expenses.

Direct Labor-Hours

The cumulative hours employees dedicate to directly participating in the creation of a product or the provision of a service.