The Output Gap Is

question 32

Multiple Choice

The output gap is

• A) the difference between target output and realized output.
• B) the difference between initial output and final output.
• C) the difference between market-clearing output and actual output.
• D) the difference between forecasted output and past output.

Understand the difference between variable and fixed manufacturing overhead costs and their implications on overhead rates.

Calculate and understand the significance of plantwide predetermined overhead rates.

Apply overhead costs to jobs based on predetermined overhead rates.

Evaluate the efficiency of using labor-hours vs. machine-hours as allocation bases for overhead rates.

---

Definitions:

Plan Of Termination

A proposed strategy or arrangement for concluding operations, typically associated with business closures or ending specific contracts.

Expected Completion Date

The projected date when a project or task is anticipated to be finished.

Projected Unit Credit Method

An actuarial technique used to estimate the present value of defined benefit obligations and related current service costs for pension plans.

Long Service Leave Obligations

Obligations to employees arising from their entitlement to long service leave, a form of employee leave based on extended service to an employer.