Price Is a Rough Measure of ___________________

question 206

Multiple Choice

Price is a rough measure of ___________________.

• A) company profit
• B) customer value
• C) market supply
• D) company costs
• E) economic inflation

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Definitions:

Direct Labor-Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process to produce a single unit.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product, including indirect materials, labor, and other expenses.