In an REA Diagram,resource Entities

question 18

Multiple Choice

In an REA diagram,resource entities

• A)can be linked to event entities in Business Cycle A and to event entities in Business Cycle B.
• B)cannot be linked to event entities in Business Cycle A and to event entities in Business Cycle B.
• C)cannot be linked to agent entities.
• D)none of the above

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Definitions:

Materials Markup

The amount added to the cost price of materials to cover overhead and profit when pricing a product or service.

Direct Labor Rate

The wage rate paid to employees directly involved in manufacturing goods or providing services, expressed per hour or per unit of output.

Time and Materials Pricing

A contract or pricing method where the customer pays the supplier based on the time spent to complete the work and the cost of materials used.

Production Capacity

The maximum amount of goods that can be produced in a given timeframe using available resources.