When a Firm Acquires the Resources Needed to Perform an Activity,what

question 20

Multiple Choice

When a firm acquires the resources needed to perform an activity,what is it obtaining?

• A)practical capacity
• B)resource usage
• C)activity capacity
• D)unused capacity

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a pre-established criterion, such as labor hours or machine hours.

Direct Labor-Hours

The number of hours worked by employees directly involved in the production process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on estimated costs.

Machine-Hours

An indicator of the duration a machine is in use over a specific timeframe.