Capital Assets Are Otherwise Known As

question 18

Multiple Choice

Capital assets are otherwise known as:

• A)operating assets.
• B)inventory.
• C)intangible assets.
• D)current assets.

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Definitions:

Labor-Hours

The total number of working hours clocked by employees within a specific period, reflecting the labor input.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of output on the basis of some common activity, such as machine-hours or labor hours.

Labor Cost

The total expense incurred by a company for the compensation of its employees.

Machine-Hours

A measure of the amount of time a machine is operated, used in cost accounting to allocate machine-related expenses to products.