Consider the Following REA Diagram as You Respond to the Question

question 59

Multiple Choice

Consider the following REA diagram as you respond to the question: The boxes in the third column represent a(n) :

• A)Resource and internal agent
• B)Event and internal agent
• C)Internal agent and external agent
• D)Resource and external agent

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Definitions:

Direct Labor-Hours

The total number of work hours spent by employees who are directly involved in the manufacturing process.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often labor or machine hours.

Activity-Based Costing

An accounting method that identifies and assigns costs to specific activities, thereby more accurately reflecting the costs of products or services.

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.