____ Are Where the Defined Responses to the Risks Are

question 28

Multiple Choice

____ are where the defined responses to the risks are detailed,but their amounts are not yet precisely known.

• A)Known unknowns
• B)Unknown knowns
• C)Known knowns
• D)Unknown unknowns

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Definitions:

Overapplied

A situation where the allocated amount of indirect costs exceeds the actual amount incurred.

Underapplied

A situation where the applied manufacturing overhead is less than the actual manufacturing overhead incurred, indicating that the costs have not been fully allocated.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate overhead costs to products or job orders based on a chosen activity base.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or provision of services.