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Intangible assets can have either finite or indefinite lives.
Fixed Manufacturing Overhead
Indirect manufacturing costs that remain constant regardless of the level of production, such as salaries of supervisors and rent of the factory building.
Manufacturing Overhead
Indirect factory-related costs that are incurred when a product is manufactured, including costs related to operations such as utilities and salaries for managers.
Machine-Hours
A metric to quantify the operational time of machines in the production process, essential for calculating manufacturing costs and efficiency.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to products, calculated before the accounting period begins based on estimated costs.
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