Making All or Part of a Product In-House Is Referred

question 5

Multiple Choice

Making all or part of a product in-house is referred to as:

• A)decentralization.
• B)centralization.
• C)licensing.
• D)vertical integration.

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Definitions:

Predetermined Overhead Rate

An estimated rate used for allocating fixed and variable overhead costs to products or services based on expected activity levels.

Automated Jointer

A machine tool used in woodworking for making flat surfaces along the lengths of boards, which operates automatically.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service, given current resources and constraints.

Job-Order Costing

An accounting method that collects and assigns manufacturing costs to individual units or batches of production, suitable for customized products.