When Analyzing Sales Volume by Customers Groups,a Useful Basis for Grouping

question 55

Multiple Choice

When analyzing sales volume by customers groups,a useful basis for grouping customers is by:

• A)Industry divisions (transportation,farm market,manufacturer,etc. ).
• B)Channels of distribution (wholesalers,department stores,discount stores,etc. ).
• C)Key (national)accounts and other accounts.
• D)Any or all of these.
• E)Only two of A-B-C are used.

---

Definitions:

Predetermined Overhead Rate

calculates an estimated overhead cost per unit of activity, aiding in assigning indirect costs to products or services.

Plantwide Predetermined Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied to all units produced irrespective of department or product differences.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs, useful for customized orders.

Direct Labor-Hours

The amount of labor time consumed by workers who are directly engaged in the manufacturing of products, serving as a critical factor in costing and production planning.