Which of the Following Is Not a Basic Question in Capacity

question 88

Multiple Choice

Which of the following is not a basic question in capacity planning?

• A) what kind is needed
• B) how much is needed
• C) when is it needed
• D) who will pay for it
• E) what it will be used for

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Definitions:

Plantwide Factory Overhead Rate

The plantwide factory overhead rate is a single rate used to allocate all of a plant's manufacturing overhead costs to its production activities, based on a common basis such as direct labor hours.

Overhead Rates

The rates used to allocate indirect costs to products or services, representing the proportion of overheads each product or service carries.

Allocation-Base Usage

The process of distributing costs based on a predetermined criterion or base, such as machine hours or labor costs.

Activity-Based Costing

Activity-based costing is a method in accounting that assigns costs to products and services based on the resources they consume and the activities undertaken to produce them.