In Most Businesses, Cost Standards Are Established Principally by Accountants

question 139

True/False

In most businesses, cost standards are established principally by accountants.

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Definitions:

Assembly Department

A segment of a manufacturing site dedicated to constructing end products from various components.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a certain activity base, such as labor hours or machine hours.

Direct Labor-Hours

The total hours worked directly on a specific task or project by employees who are considered part of the production process.

Machine-Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and activity bases.