For the Step in a Time Study That Involves Breaking

question 115

Multiple Choice

For the step in a time study that involves breaking the job down into easily recognizable elements, each of these elements should ________________.

• A) overlap
• B) not be stand-alone
• C) not involve the worker
• D) have clear starting and ending points
• E) be semi-continuous

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Definitions:

Absorption Costing

The product cost determination method under this accounting strategy includes the expenses for direct materials, direct labor, and all manufacturing overhead, whether it is variable or fixed.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs and treats fixed manufacturing overhead as an expense of the period.

Period Cost

Expenses that are not directly tied to production activity and are expensed in the period in which they are incurred.