The Time It Takes the Marketing Department to Specify to the Manufacturing

question 30

Multiple Choice

The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________.

• A) receipt time
• B) waiting time
• C) delivery time
• D) manufacturing cycle time

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Definitions:

Job Cost Accuracy

The precision with which a company estimates and tracks the costs associated with specific jobs or projects.

Overhead Cost Driver

A factor that causes the cost of overheads to change, such as machine hours or labor hours.

Predetermined Overhead Rate

A rate estimated before a period begins, used to allocate overhead costs to products or job orders based on a chosen activity base.

Allocation Base

A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.