Which of the Following Would Be Considered a Performance Standard

question 106

Multiple Choice

Which of the following would be considered a performance standard for a clerk at a movie rental store?

• A) Stocks coolers of food items and snack racks.
• B) Operates cash register.
• C) Greets customer within 15 seconds of entering store.
• D) Files returned DVDs.

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Definitions:

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.

Estimated Labor-Hours

The projected number of labor hours required to complete a batch of goods or provide a service.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.

Unused Capacity

Resources available for use that are not being employed in production, often representing inefficiency.