In an ABC System of Inventory Control,________ Is (Are)the Measure

question 91

Multiple Choice

In an ABC system of inventory control,________ is (are) the measure of the relative importance of an item in the company's inventory.

• A)dollar usage value
• B)carrying costs
• C)set-up costs
• D)optimum inventory level

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Definitions:

Fixed Overhead Budget Variance

The variance between the budgeted and the actual incurred fixed overhead expenses.

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead cost that is assigned to each unit of production based on a predetermined rate.

Labor-Hour

A labor-hour represents an hour of work performed by an employee, typically used as a basis for allocating labor costs or measuring productivity.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and factory equipment depreciation.