A Business with Only 100 Employees Will NOT Be Considered

question 88

Multiple Choice

A business with only 100 employees will NOT be considered a small business if it ________.

• A)makes no profit
• B)has a major impact on its industry
• C)makes a large profit
• D)has no impact on its industry

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied to all production units irrespective of the department in which they were produced.

Overhead Cost Pool

A collection of indirect expenses grouped together to be allocated systematically to different departments, processes, or products.

Departmental Overhead Rate Method

A calculation used in cost accounting to allocate overhead expenses to specific departments based on their respective share of direct costs or activity levels.