Technically, Investments Include

question 3

Multiple Choice

Technically, investments include:

• A) only financial assets.
• B) only marketable assets.
• C) financial and real assets that are marketable or non-marketable.
• D) only financial and real assets that are marketable.

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Definitions:

Predetermined Overhead Rate

A predetermined overhead rate is calculated by dividing estimated manufacturing overhead costs by an allocation base, used to assign overhead costs to products.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not vary with the level of production, such as salaries of managers and depreciation of factory equipment.

Variable Manufacturing Overhead

Costs associated with manufacturing that vary directly with the levels of production output, such as raw materials and labor.

Overhead Applied

The allocated manufacturing overhead costs to individual products or jobs based on a predetermined rate.