In a University, Professors Are Designated as

question 73

Multiple Choice

In a university, professors are designated as

• A) line employees.
• B) staff employees.
• C) both line and staff employees.
• D) neither line nor staff employees.

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Definitions:

Denominator Level

The quantity or level used in cost accounting as a divisor to allocate fixed costs among units of output, helping in understanding per unit costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products or job orders, calculated based on estimated costs and activity levels before the period begins.

Variable Overhead

Costs that fluctuate with the level of production activity, such as utilities for the manufacturing plant or commissions for sales staff.

Efficiency Variance

The difference between the actual amount of resources used in production and the amount that was expected to be used, indicating the level of efficiency in using materials, labor, and overhead.