The Term Applied Overhead Refers to the Element of Direct

question 98

True/False

The term applied overhead refers to the element of direct labor hours or cost used in the CIM environment.

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Definitions:

Average Cost

The total cost of production divided by the number of goods produced.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.

Marginal Productivity

The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.

Diminishing

The process of lessening or decreasing in size, importance, or intensity.