Manufacturers Follow Four Steps to Implement a Manufacturing Overhead Allocation

question 217

Multiple Choice

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to

• A) select an allocation base and estimate the total amount that will be used during the year.
• B) allocate some manufacturing overhead to each individual job.
• C) estimate total manufacturing overhead costs for the coming year.
• D) calculate a predetermined manufacturing overhead rate.

Understand the concept of sales allowances and their impact on pricing strategies.

Learn to compute inventory shrinkage using the comparison between actual and recorded inventory.

Identify and describe the system used to record transactions related to purchases, returns, and discounts.

Understand the process and importance of preparing documentation for sales returns and allowances.

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Definitions:

Law Of Effect

A principle stating that behaviors followed by positive outcomes tend to be repeated, while those followed by negative outcomes are less likely to be repeated.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Reinforcement

In behavioral psychology, it refers to any stimulus which strengthens or increases the probability of a specific response.

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior being repeated.