For Accounting Information to Be Useful,it Must Be Both Relevant

question 115

True/False

For accounting information to be useful,it must be both relevant and reliable.

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated for an entire factory or plant, applied uniformly to all the production units, regardless of the department in which they were produced.

Labor-Intensive

Refers to a type of industry or process that requires a large amount of manpower to produce goods or services, as opposed to being highly automated.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

The total hours that a machine is operational, used as a measure for allocating manufacturing overhead costs.