The Two Main Advantages of Using Predetermined Factory Overhead Rates

question 58

Multiple Choice

The two main advantages of using predetermined factory overhead rates are to provide more accurate unit cost information and to:

• A)Simplify the accounting process.
• B)Provide cost information on a timely basis.
• C)Insure transmission of correct data.
• D)Extend the useful life of the cost data.
• E)Adjust for variances in data sources.

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Definitions:

Reward

A positive reinforcement given following a desired behavior, with the aim of increasing the likelihood of the behavior occurring again.

Applied Behavior Analysis

A field of psychology that focuses on improving specific behaviors through reinforcement and other learning principles.

Autism

A neurodevelopmental disorder characterized by difficulties in social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Behavior Modification

A therapeutic approach that seeks to change potentially self-destructive or unhealthy behaviors through reinforcement and punishment.