Select the Appropriate Classification of the Output Generated by Each

question 206

Multiple Choice

Select the appropriate classification of the output generated by each of the following industries.
-Medical clinic

• A)Tangible
• B)Intangible

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a relevant activity base.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including expenses such as rent, utilities, and equipment depreciation.

Predetermined Overhead Rate

An estimated rate used to allocate indirect costs to products or services, based on a selected activity base such as machine-hours or labor-hours.

Direct Labor-Hours

The overall hours spent by staff directly participating in creating goods.