What Is a Technique for Estimating the Proportion of Time

question 93

Multiple Choice

What is a technique for estimating the proportion of time an employee or machine spends on different work activities?

• A) predetermined time data
• B) time elements
• C) stopwatch time study
• D) work sampling
• E) simultaneous motion study

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Definitions:

Plantwide Overhead Rate

A single predetermined overhead rate that is used throughout a plant.

Departmental Overhead Rates

Specific overhead rates calculated for different departments within a company to more accurately assign costs.

Activity-based Costing

A costing method that assigns overhead costs to products based on the activities that consume resources in producing the product.

Product-level Activities

Operations or tasks that are performed specifically in support of producing a particular product, often influencing the cost associated with that product.