Martha Owns a Chocolate Factory Where Each Chocolate Is Made

question 66

Multiple Choice

Martha owns a chocolate factory where each chocolate is made by hand.Her assistant,Daniel,feels that the rate of production can be dramatically increased if the factory switched to an automated assembly line to manufacture the chocolates.When he proposes this idea to Martha,she agrees and begins evaluating different vendors who might provide the equipment to the factory.Which of the following roles did Daniel perform in the purchasing process?

• A)Decider
• B)Initiator
• C)Buyer
• D)Gatekeeper

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or projects, based on expected conditions.

Machine-Hours

A measure of manufacturing time that indicates the amount of time a machine is in use.

Machine-Hours

A measure of the amount of time that machinery is in operation, typically used as a basis for allocating manufacturing overhead costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a predetermined formula, often involving estimated costs and activity levels.