One Useful Aspect of the North American Industry Classification System

question 35

True/False

One useful aspect of the North American Industry Classification System (NAICS)data is that it helps organizations identify potential new customers.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overhead costs to products.

Machining

A manufacturing process involving the shaping of metal or other materials through controlled material-removal techniques.

Customizing

The process of making or modifying something according to a customer's individual requirements.

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products based on a specific activity basis, such as labor hours or machine hours.