When a New Accounting System Is Developed, Organizations Rarely Streamline

question 22

True/False

When a new accounting system is developed, organizations rarely streamline business processes to improve effectiveness.

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Definitions:

Machine-Hours

An indicator of how much output is generated in manufacturing, determined by the total hours that machinery is in use.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, based on the estimated overhead costs and estimated activity level, used to allocate overhead costs to products or services.

Labor-Hours

A measure of the work performed by employees, typically represented by the number of hours worked.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary with the level of production output.