In the Breakdown for the NAICS Code Based on Figure

question 94

Multiple Choice

In the breakdown for the NAICS code based on Figure 6-1 above,"A" represents the

• A)two-digit industry sector code.
• B)three-digit industry subsector code.
• C)four-digit industry group code.
• D)five-digit industry code.
• E)six-digit U.S.national industry code.

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Definitions:

Finishing Department

A section of a manufacturing company where goods are completed and prepared for sale.

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead costs to products, calculated before the period begins.

Machine-Hours

A measurement of the amount of time machines are in operation, used to allocate machine-related costs to products.

Fixed Manufacturing Overhead Cost

Expenses related to manufacturing that do not change with the level of production, such as rent, salaries, and depreciation on equipment.