Which of the Following Would Most Likely Be Evaluated Using

question 27

Multiple Choice

Which of the following would most likely be evaluated using return on investment?

• A) Cost center
• B) Profit center
• C) Revenue center
• D) Investment center

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Definitions:

Variable Manufacturing Overhead

Costs of production that fluctuate with the level of output, such as materials and operational expenses, excluding direct labor and material costs.

Unit Product Cost

The overall expense of manufacturing a single product unit, encompassing direct materials, direct labor, and production overhead costs.

Unit Product Cost

The total cost (direct materials, direct labor, and manufacturing overhead) divided by the number of units produced.

Machine-Hours

Machine-hours represent a measure of production time, indicating the total hours a machine is operated in the manufacturing process of goods.