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An Appropriation Is Authorization for Administrators to Incur Specified Amounts

question 28

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An appropriation is authorization for administrators to incur specified amounts of liabilities on behalf of the government for specified purposes.


Definitions:

Machine-Hours

A measure of the amount of time machinery is in operation, commonly used as a basis for allocating machine related costs to products.

Manufacturing Overhead

All indirect costs associated with the production process, including equipment maintenance, utilities, and factory management salaries.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.

Capacity

The maximum level of output that a company can sustain to produce in a given period.

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