The Correct Order of the Three Stages of Accounting Is

question 140

Multiple Choice

The correct order of the three stages of accounting is

• A)communication,processing,and measurement.
• B)measurement,communication,and processing.
• C)processing,measurement,and communication.
• D)measurement,processing,and communication.

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Definitions:

Direct Labor-Hours

A measure of the total hours worked directly on the production of goods or services by employees.

Predetermined Overhead Rate

The predetermined overhead rate is a rate that is calculated before a period begins, used to allocate estimated overhead costs to cost objects based on a chosen activity base.

Machine-Hours

A measure of the amount of time a machine is operated, typically used in manufacturing to determine production costs or capacity.

Predetermined Overhead Rate

A rate determined prior to the start of a period, designed for assigning anticipated overhead expenses to products or job orders, utilizing a selected activity basis for calculation.