Models Must

question 84

Multiple Choice

Models must

• A) be able to yield useable predictions.
• B) be totally realistic in every detail.
• C) be a complete reproduction of the real world.
• D) include every relationship that exists.

---

Definitions:

Direct Material Used

The raw materials that are directly included in the finished product, easily traceable to specific goods or batches of goods.

Variable Manuf. Overhead

Expenses associated with manufacturing that vary directly with the level of production output, such as materials and utilities.

Standard Variable Overhead Rate

A predetermined rate applied to estimate the variable overheads based on a specific activity base.

Standard Hours Per Unit

The estimated time required to produce one unit of a product under standard operating conditions.