In General, in Recent Times Compared to the Past, Overhead

question 11

Multiple Choice

In general, in recent times compared to the past, overhead as a percentage of a firm's total costs:

• A)has decreased.
• B)has remained the same.
• C)has increased.
• D)cannot tell

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Definitions:

Automated Shaper

A machine tool that uses computer control for shaping or surfacing metal and other materials.

Gross Margin

The difference between revenue and the cost of goods sold, expressed as a percentage of revenue, indicating the portion of sales income that exceeds the cost of goods sold.

Job-Order Costing

A costing method used to determine the cost of producing specific products or jobs, assigning direct materials, labor, and overhead costs to individual jobs based on actual expenses incurred.

Predetermined Overhead Rate

An estimated rate used for allocating fixed and variable overhead costs to products or services based on expected activity levels.