An Import Is a Product

question 62

Multiple Choice

An import is a product

• A) produced in and purchased by residents of the home country.
• B) produced in and sold to the residents of a foreign country.
• C) produced in the home country and sold in another country.
• D) produced in a foreign country and purchased by the residents of the home country.

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Definitions:

Predetermined Overhead Rate

A rate used in cost accounting to allocate overhead costs based on an estimated activity level.

Direct Labor-hours

The hours that workers contribute directly towards the manufacture of goods over a specified period.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as depreciation of machinery and the salary of the factory manager.

Job Cost

The total cost of labor, materials, and overhead allocated to a specific job or project.