The Average Benefit of an Activity Is The

question 42

Multiple Choice

The average benefit of an activity is the:

• A) total benefit of the activity divided by the number of units.
• B) number of units divided by the total benefit of the activity.
• C) number of units times the total benefit of the activity.
• D) extra benefit for one additional unit of the activity.

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Definitions:

Machine-Hours

A measure of production time, indicating how many hours machines are operated in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance of factory equipment, and salaries of factory supervisors.

Job Cost

The total cost of materials, labor, and overhead allocated to a specific job or project.

Unit Product Cost

The cost assigned to a single unit of product, combining direct materials, direct labor, and manufacturing overhead expenses.