Your Boss Asks You to Graph Company Profits for the Past

question 75

Multiple Choice

Your boss asks you to graph company profits for the past 10 years. The best way to show this information is with:

• A)a scatter diagram.
• B)a pie chart.
• C)a time-series graph.
• D)an independent graph.

---

Definitions:

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured including costs related to depreciation, utilities, and maintenance.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total manufacturing overhead costs by the total measure of activity across the entire plant.

Manufacturing Overhead

All manufacturing costs that are not directly traceable to the product being produced, including costs related to indirect materials, indirect labor, and other indirect expenses.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce them, aiming for more accurate cost allocation.