Which of the Following Is Equivalent to the Costs That

question 197

Multiple Choice

Which of the following is equivalent to the costs that firms incur in acquiring economic resources?

• A) revenues from the product
• B) income of the resources
• C) money flowing from the resources
• D) profits from the resources employed

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Definitions:

Machine-Hours

A measure of production time, describing how many hours a machine is in operation.

Job-Order Costing

A cost accounting system that accumulates costs per job rather than by process, suitable for firms producing unique products or jobs.

Plantwide Predetermined

A single predetermined overhead rate that is applied throughout an entire plant or manufacturing facility.

Machine-Hours

A measure of the amount of time that a machine is operated, used as a basis for allocating manufacturing overhead costs in traditional costing systems.