A high-level is manager has his firm utilize sophisticated information systems to digitally design its products so that design defects can be detected and removed early in the process, reducing development cost. cost leadership business strategy does this represent .
What does "cost leadership" mean?
When a business positions itself as the industry's lowest-cost producer or supplier of a specific good or service, it is said to be exhibiting cost leadership.
The approach is challenging to implement since management must continuously strive to lower costs at every level to maintain its competitiveness.
Describe cost leadership using an example?
A business that uses the cost leadership approach provides a wide range of clients with goods and services at competitive prices that are of acceptable quality and feature-richness.
For instance, Super Shoes offers name-brand footwear at reasonable costs. Another illustration would be Little Debbie snack cakes.
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by how much does the current gdp rise in the following scenario? a real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. the real estate agent earns a commission of $10,000.
The sale of the house would not directly impact the GDP, as the GDP measures the total value of all goods and services produced within a country for a given period of time. The $250,000 sale of the house does not represent the production of any goods or services.
What is services produced?Services produced are goods or activities that help to satisfy consumer needs. They are intangible in nature, meaning they cannot be touched or seen, and are created through the application of knowledge, skills, and resources. Examples of services produced include consulting, financial advice, healthcare, legal services, education, transportation, entertainment, and hospitality. Services provide value to customers by offering convenience, problem-solving, customization, and personalization.
However, the real estate agent's commission of $10,000 would be included in the GDP, as it is income that they earned through the sale of a service (real estate brokerage). Therefore, the GDP would rise by $10,000 in this scenario.
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the following transactions are july activities of bill’s extreme bowling, incorporated, which operates several bowling centers. if revenue is to be recognized in july, indicate the amount?
1. July rent revenue of $2,000 from a new tenant that will lease office space from Bill's Extreme Bowling:
$2,000
What is revenue?Generally, Revenue is the total income generated from the sale of goods and services, before any expenses are subtracted.
It is also referred to as the "top line" or gross income.
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kenny's boots has current assets of $687,600, total assets of $1,711,000, net working capital of $223,700, and long-term debt of $450,000. what is the debt-equity ratio?
The debt-equity ratio is 1.15
Current liabilities = $687,600 − 223,700
Current liabilities = $463,900
Total equity = $1,711,000 − 463,900 − 450,000
Total equity = $797,100
Debt-equity ratio = ($463,900 + 450,000)/$797,100
Debt-equity ratio= 1.15
What is the debt-equity ratio?
The debt-to-equity ratio is a financial metric that shows how much debt and shareholder equity were utilized to finance the assets of a company. The ratio, often known as risk, gearing, or leverage, is closely related to leveraging. D/E ratios under 1 are typically seen as quite safe, however, levels of 2 or more may be viewed as dangerous. Businesses in some sectors, such as utilities, consumer goods, and banking, frequently have high D/E ratios. A particularly low D/E ratio should be taken into consideration as it may be a sign that the company is not utilizing debt financing and its tax benefits.
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a case study that elaborates on a company's journey from a startup to a multinational company is most likely an example of an .
The correct answer to the question above is "analytical report". A case study that elaborates on a company's journey from a start-up to a multinational company is an example of an analytical report. That is because an analytical report presents the details of a case as well as an analysis of its events and characters.
An analytical report is a business report that use by stakeholders to determine the best decision or action about its business. Analytical reports usually have a structure consisting of a title page, table of contents, intro, methodology, body section, conclusion, recommendation, and a bibliography. There's some type of analytical report:market analysisoperation analysisfinancial analysistrend analysis
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sam deposited $800 at a 2.4% annual interest, compounded quarterly. in how many years, to the nearest tenth of a year, will he have $1,600 in the account?
The deposited amount $800 with 2.4% annual interest rate
compounded quarterly become $1,600 in 29 years.
Principal amount deposited 'P' by Sam is equal to $800
Annual rate of interest 'r' compounded quarterly is equal to 2.4%
Let 'n' be the number of years
Total amount 'A' after 'n' years is equal to $1,600
Amount = Principal amount [ 1 + (rate of interest)/4 ]^ 4n
Substitute the value in the formula we get,
⇒ $1,600 = $800 [ 1 + (2.4 /4×100) ]^4n
⇒ $1,600 / $800 = [ 1 + 0.024/4 ]^4n
⇒2 = [ 1.006 ]^4n
⇒ n = log2 / 4 log(1.006 )
⇒ n = 28.967
⇒ n = 29 years
Therefore, the number of years required to have $800 to be $1,600 at 2.4% annual interest rate compounded quarterly is equal to 29 years.
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define the best way in which you can shift your purchasing power from high-earning periods to low-earning periods of life? multiple choice question. during low-earning periods invest your savings in financial assets (stocks/bonds). invest in a collection of luxury automobiles. spend all your disposable income as soon as you earn it. during high-earning periods invest your savings in financial assets (stocks/bonds).
during high-earning periods invest your savings in financial assets (stocks/bonds). so the option D is the correct answer.
Investments are sums of money used to purchase assets with the expectation that their value will increase over time. A present resource, such time, money, or effort, must be lost in order to invest.
Investments are made in the financial realm in order to gain from the asset that is being used. The return may comprise a gain (profit) or loss realised through the sale of a residence or investment, an unrealized capital gain (or loss), investment income like dividends, interest, or rental income, or a combination of capital gain and income. Due to fluctuating currency rates, the return may potentially include foreign exchange gains or losses.
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the nonbinding, informal process in which a third party is selected by the disputing parties to attempt to help them reach a mutually acceptable agreement is known as:
A third party is selected by the disputing parties to attempt to help them reach a mutually acceptable agreement is known as mediation.
What is agreement?
Agreement is an understanding between two or more parties to do or not do a certain action, or to follow a specific course of action. It involves two or more persons who agree to enter into an arrangement and to abide by the terms of that arrangement. It is usually set out in writing and is legally binding. Agreement typically involves a quid pro quo, or exchange of things of value, such as money, services or goods. Agreement can be used to create a contract and can also be used to settle disputes or disagreements between parties. It is important to ensure that any agreement is clear, specific and covers all relevant aspects; it should also be signed or witnessed by both parties to ensure it is legally valid.
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thomas company has $120,000 of assets, $40,000 of liabilities, $50,000 of stock, and $30,000 of retained earnings. investors own 25,000 shares of thomas' stock that has a current market value of $5.20 per share. based on this the book value per share of the stock is:
Based on this, the book value per share of the stock is $3.20 per share. Each company has a hierarchy of rights to the three major classes of securities it issues.
$3.20; (50,000 shares + $30,000 retained earnings) ÷ 25,000 shares = $3.20 per share.
Each company has a hierarchy of rights to the three major classes of securities it issues.
Bonds, preferred stock, common stock. In other words, there is a right-wing pecking order.
The priority of each security class can best be understood by looking at what happens when a company goes bankrupt. As a common shareholder with an interest in a company, you may think that if the company goes bankrupt, you will be the first to receive some of the company's assets. In reality, when a company goes into liquidation, common shareholders are at the bottom of the company's food chain. In bankruptcy proceedings, creditors are first liquidated from the assets of the company.
Then there are bondholders, preferred shareholders, and finally common shareholders. This hierarchy is determined by something called "absolute precedence". This is the rule used to determine which portion of the payment goes to which participant in bankruptcy.
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which of the following is a characteristic of a service economy? multiple choice it is concerned with the indigenous production of food, clothing, and furniture. it is devoted to producing services that make life easier for busy consumers. it is devoted to producing goods and services rather than producing agricultural products. it is significant for the development of factories along the railways to manufacture farm equipment. it is particularly important for enabling farmers to send their surplus crops and goods all over the nation for barter or for sale.
Option (b), A feature of a service economy is its commitment to creating services that make consumers' lives easier.
What is meant by the phrase "service economy"?A service economy is an economic system where the main activity is the provision of services rather than the manufacturing of goods. Some examples of these services include building roads, receiving medical care, providing food and accommodation, and other specialized services.
What qualities characterize a service economy?There are numerous services available, few manufacturers, and the majority of service-based economies are found in first-world countries. The tertiary sector dominates the service-based economy.
Why is the economy so dependent on the marketing of services?Many people could think they don't even need the service. This is among the factors that make marketing for services so important. Although consumers may not have connected certain services and benefits with a particular company's brand, effective service marketing pinpoints crucial perks that consumers are aware they need or want.
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from the perspective of ownership risk, the best form of business organization is the (a). Partnership, (b) S Corporation, (c) Sole Proprietorshop, (d) Corporation
The corporation is the ideal type of commercial structure from the perspective of ownership risk.
What is the business ownership?The corporation is the ideal type of company structure from the ownership risk perspective. Shares options are the chance to purchase stock for a predetermined price and for a predetermined amount of time. The biggest financial benefit of having a home is the ability to deduct mortgage interest and real estate tax payments, which lowers federal income taxes.Each of the three often encountered company structures—a sole proprietorship, a partnership, and a corporation—has its own advantages and drawbacks. What you need to know about each one is outlined below. an ongoing financial commitment. You are accountable for performing any maintenance on your house, from simple fixes like mending a leaky faucet to more significant ones like replacing the roof.To learn more about business ownership, refer to:
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depreciation on the company’s equipment for the year is computed to be $18,000. the prepaid insurance account had a $6,000 debit balance at december 31 before adjusting for the costs of any expired coverage. an analysis of the company’s insurance policies showed that $1,100 of unexpired insurance coverage remains. the supplies account had a $700 debit balance at the beginning of the year, and $3,480 of supplies were purchased during the year. the december 31 physical count showed $300 of supplies available. two-thirds of the work related to $15,000 of cash received in advance was performed this period. the prepaid rent account had a $6,800 debit balance at december 31 before adjusting for the costs of expired prepaid rent. an analysis of the rental agreement showed that $5,800 of prepaid rent had expired. wage expenses of $3,200 have been incurred but are not paid as of december 31.
Equipment depreciates $18,000, insurance is $1,100 short, consumables are $300 short, $10,000 in advance cash was generated, rent is $5,800 short, and wages are $3,200 short.
What is depreciation?Depreciation is an accounting word that describes the progressive decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors. Depreciation is classified as a non-cash item in financial accounting, which indicates that it does not need an immediate cash outlay, but it is recorded in the books as an expense for the period. Depreciation is typically computed using one of many methods, such as the straight-line approach, the falling balance method, or the sum-of-the-years'digits method, to apportion the cost of the item across its useful life. The goal of depreciation is to more properly match an asset's expenses with the revenue it generates over its life.
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Money management involves financial activities necessary to manage current personal economic resources, while working for the achievement of long-term financial security.a. Trueb. False
True, In order to manage one's current financial resources and work toward long-term financial security, one must engage in certain financial activities.
What are financial resources?
A resource would be any material that is accessible in our environment that seems to be financially sustainable, culturally feasible, and technologically accessible and that permits us to satisfy our desires and requirements. The money and some other resources often used to finance an organization's activities and investments are described as financial resources. A company can achieve and utilize its financial resources in a plethora of ways. To put it more simply, financial resources are just the funds that keep a business running.
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noah and orin do business as personnel partners. in most states, for purposes of suing and being sued, personnel parterns would be treated as
Since noah and orin business is data security, most states would recognize the company as an independent organization for the purposes of collecting judgments.
Small Business Administration is known as SBA. It supports Americans who are launching new businesses. The SBA administrators will be giving a SCORE the money. The SBA views SCORE as a resource partner. The SCORE volunteers will conduct training sessions for business owners starting new ventures through the SBA offices. In the described scenario, Devon, a five-year business owner, is having problems keeping track of the company's assets. As a result, he requires some advice from the SBA Score volunteers, and the fact that SCORE staff offer services to small businesses via the SBA can be used to explain the organization's goals and services.
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in your budget, what allows you to choose where to allocate the additional money by going through the categories and deciding what areas are your greatest priorities?
When it comes to budgeting, it is important to prioritize where you allocate your additional money. Depending on your individual financial goals, you can decide which areas are the most important.
What is financial goals?
Financial goals are objectives that an individual or organization sets in order to plan and manage their financial resources. These goals can include saving money, paying down debt, and creating an emergency fund. Achieving financial goals also involves developing a budget, creating a savings plan, and investing money. Financial goals should be specific, measurable, attainable, realistic, and timely. Setting short-term and long-term financial goals can help an individual or organization stay on track and reach their financial objectives. It’s important to regularly review and adjust financial goals to make sure they are still appropriate and achievable. Financial goals can help individuals and organizations make the most of their resources and achieve financial success.
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marketing activities often cost 50 percent or more of the selling price of a product or service.true or false
True. ( Marketing activities often cost more than 50% of the selling price of a product or service.)
How would you define marketing?
Marketing is the set of activities, institutions and processes for creating, communicating, delivering and exchanging offers of value to customers, clients, partners and society at large.
What are the four styles of marketing?
The 4 P's are the "marketing mix" made up of the four main elements used to market your product or service: product, price, location and promotion. Businesses typically consider 4 P's when creating marketing plans and strategies to effectively market to their target audience.
What is a marketing job?
Marketers are responsible for promoting the business and the products and services it sells. Marketing people typically organize and execute both inbound and outbound advertising campaigns to raise brand awareness and employ marketing strategies to persuade consumers to purchase from a company.
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Which theory asserts that countries should simultaneously encourage exports and discourage imports?
(a)free trade
(b)capitalism
(c)new trade
(d)mercantilism
(e)socialism
bruce wants to buy a set of antique bat figurines. he can't afford them now, but believes that in 8 years, they will cost $6,000. he can invest $3,000 into an account today, which he will let sit for the whole 8 years. this account earns 9% interest, compounded monthly. how much will this investment grow to by the end of the 8 years?
The investment of $3,000 grows at the end of 8 years at rate of interest 9% compounded monthly is equal to $6146.76.
Principal amount 'P' invested by Bruce in the account = $3,000
Time period 't' = 8 years
Rate of interest compounded monthly 'r'= 9%
Amount required to buy antique = $6,000
Let 'A' be the amount after 8 years
Formula of compounded monthly
A = P ( 1 + r/12 )^12t
Substitute the value in the formula we get,
A = $3,000 ( 1 + 0.09 / 12 ) ^(12×8 )
⇒ A = 3,000 ( 1 + 0.0075 )^96
⇒A = 3,000×( 1.0075 )^96
⇒ A = $6146.76
Therefore, the growth of the investment in 8 years as per given rate of interest compounded monthly is equal to $6146.76.
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a negotiation between a seller and a buyer began with each party stating their respective expectations in a competitive style. the seller started with as high an asking price as is considered reasonable. likewise, the buyer began with the lowest reasonable price. in the context of negotiation methods, this scenario is an example of . group of answer choices surface bargaining positional bargaining principled negotiation distributive negotiation fact bargaining
The vendor set the asking price as high as was deemed appropriate at the outset. The buyer also started with the lowest reasonable price. This situation serves as an illustration of positional bargaining in the context of negotiation techniques.
Positional bargaining refers to when parties negotiate based on their positions or statements of what they intend to obtain from the discussion. Positional bargaining is a type of distributive negotiation in which both sides consider the conflict to be a lose-lose situation. A good illustration of positional negotiating is when a store owner and a customer discuss the price of a product. The seller will only accept payments over a certain threshold, and the buyer will only pay up to a certain amount. Negotiating from a position is ineffective. Positional negotiation typically involves parties trying to outdo one another by starting out with an aggressive stance and then focusing only on how to make a counteroffer without budge. Small adjustments and bold suggestions could result
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all of the following are period costs except question content area bottom part 1 a. research and development expenses. b. distribution expenses. c. direct labor expenses. d. marketing expenses.
All of the following are period costs for direct labor expenses. The Option C is correct.
What are considered as part of period costs in manufacturing?Period costs are costs that are not tied to or related to the production of inventory in managerial and cost accounting. Selling, general, and administrative (SG&A) expenses, marketing expenses, CEO salary, and rent expense for a corporate office are all examples.
Because the costs are unrelated to inventory production, they are expensed in the period in which they are incurred. In short, period costs are all costs that are not involved in the production of a product (product costs).
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carol wants to have $13,000 when she turns 30. right now, she's 23 (7 years difference). she has $5,500 that she can invest in a mutual fund. if she leaves the money in this account for the full 7 years and it earns 12.5%, compounding quarterly, how much will be in the account?
After 7 years of compounding quarterly with an interest rate of 12.5%, Carol will have approximately $12,013.59 in the account.
To calculate the amount of money Carol will have in 7 years, we can use the formula for compound interest:
A = P * [tex](1 + r/n)^(nt)[/tex]
where:
A is the final amount
P is the initial amount ($5,500)
r is the interest rate (12.5%)
n is the number of times interest is compounded in a year (4 times)
t is the number of years (7)
First, we need to convert the interest rate to a decimal:
r = 12.5% / 100 = 0.125
Next, we can plug in the values into the formula:
A = $5,500 * [tex](1 + 0.125/4)^(4 * 7)[/tex]
A = $5,500 * [tex](1.03125)^28[/tex]
A = $5,500 * 2.1843878
A = $12,013.59
This means she will fall short of her goal of $13,000, so she may need to consider other options to reach her savings target.
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which of the following is a feature of the economic model of corporate social responsibility (csr)? multiple choice corporations are understood to be a particular legal form of property that the owners get to use for their own ends. shareholders are not at the center of a corporation. managers are not employees who must work to further the owners' interests, primarily by maximizing profits. managers have a primary responsibility to pursue profit outside the limitations of the law.
The feature of the economic model of corporate social responsibility is shareholders are not at the center of a corporation. Thus, option third is correct.
What is Economic Model?An economic model is a condensed description of reality that produces testable hypotheses about how the economy will behave. An key characteristic of an economic model is that, due to the lack of any objective metrics for economic results, its design must unavoidably be subjective.
Social marketing frequently transforms into acts of social responsibility. The economic model of corporate social responsibility (CSR) has the following characteristics that It asserts that profit is unrelated to the efficient use of resources.
Shareholders are not at the core of a firm, which is a characteristic of the economic model of corporate social responsibility. So, the third choice is the correct one.
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a. the 8.5%, five-year bond yields 6.4%. if this yield to maturity remains unchanged, what will be its price one year hence? assume annual coupon payments and a face value of $1,000. (do not round intermediate calculations. round your answer to 2 decimal places.) b. what is the total return to an investor who held the bond over this year? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
a. Using the yield to maturity (YTM) as the discount rate, we must compute the present value of the bond's future cash flows in order to determine its price one year from now.
To start, we must determine the bond's annual coupon payment, which is 8.5% of $1,000 ($85).
The present value of the coupon payment is then calculated as follows: $85 / (1 + 0.064) = $81.34.
Last but not least, we must determine the face value's current value, which is $1,000 / (1 + 0.064)2 = $958.11.
The bond's price one year from now is equal to the product of the face value ($915.11) plus the coupon payment's present value ($81.34), or $1039.45.
b. The total return to an investor who held the bond over this year can be calculated as the change in price plus the coupon payment divided by the initial price, which is ($1039.45 - $1000 + $85) / $1000 = 0.06445 or 6.45%.
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According to an insurance broker, over $300 billion in damages were caused last year by...
a. fracking b. natural disasters
c. car accidents
Option c is Correct. Over $300 billion in damages were reportedly caused last year by auto accidents, according to an insurance broker.
Despite the fact that women tend to drive more safely, there remains a clear gender gap in auto safety. According to the IIHS study, women are more frequently hurt or killed in crashes of equivalent severity, even when crashes involving men are more serious.
Teenagers between the ages of 16 and 19 had the highest crash risk of any age group. The fatal crash rate for teen drivers in this age range is nearly three times higher per mile traveled than it is for drivers 20 and older.
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HOW do stock prices go up? I understand that if more people are buying that stock, the demand is higher, so the share price increases, but who/what controls when the number that shows the price on yahoo changes?
When a large number of people begin to invest in a particular share, the demand for that share increases, and its prices begin to rise. If a large number of people want to sell a particular stock at the same time, supply will increase and prices will fall.
What causes Stock Prices to change and Increase?Market forces cause stock prices to fluctuate on a daily basis. This means that share prices fluctuate due to supply and demand. When more people want to buy a stock than sell it (demand), the price rises. If more people wanted to sell a stock than buy it, there would be more supply than demand, causing the price to fall.
Having said that, the main theory is that a stock's price movement indicates what investors believe a company is worth. We should not confuse a company's worth with its stock price. A company's worth is determined by its market capitalization, which is the stock price multiplied by the number of shares outstanding.
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which of the following is not an example of an external threat to a company's future profitability? likely entry of potent new competitors lack of a well-known brand name with which to attract new customers and help retain existing customers unfavorable shifts in buyer demographics and tastes costly new regulatory requirements increase(s) in interest rates
Underutilized is more appropriately referred to as underused. 10% of all the undeveloped areas must be sold. The correct answer is A. The lack of a distinctive competence .
The absence of sufficient usage or utilisation of something Low-income children rarely receive dental care. When talking about services, only use the term "underserved"; do not use it to describe all communities that are poor.
Use the phrase "under-resourced" to more about appropriately describe larger challenges and lucy opportunities Underutilization occurs when employees' unique skills and working hours aren't effectively used to accomplish organisational goals. Therefore, underutilization has a detrimental impact on income. Additionally, it is impossible to accomplish corporate goals without workers working to the best of their abilities.
Complete question:
which of the following is not an example of an external threat to a company's future profitability? likely entry of potent new competitors lack of a well-known brand name with which to attract new customers and help retain existing customers unfavorable shifts in buyer demographics and tastes costly new regulatory requirements increase(s) in interest rates
A. The lack of a distinctive competence
B. The potential of a hostile takeover
C. Adverse changes in foreign exchange rates
D. Unfavorable demographic shifts
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intermediate goods are included and final goods are not included in calculating gross domestic product. group of answer choices true false
The correct answer is false .A country's Gross Domestic Product (GDP) represents the market value of all finished goods and services produced within the country.
Avoid double counting - adding the value of output to GDP more than once - GDP only counts the final production of goods and services, not the production of intermediate goods or the value of labor in the production chain. Intermediates are products used in the manufacture of other consumer goods. Their value is already included in the final product value, so they are double counted and therefore not included in the GDP. In macroeconomics, Gross Domestic Product (GDP) measures the sum of the market values of all final goods and services produced in a given economy. Intermediate products are not counted in this total as they are already accounted for in the value of the final product contributed.
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the wto arbitrates trade disputes between its member states. what is one power of particular interest that the wto can use?
As WTO arbitrates trade disputes between its member states; one power of particular interest that it can use is issuing a ruling instructing a member-state to change trade policies that violate GATT regulations.
How does WTO settle trade disputes between its member states?The WTO's Dispute Settlement Understanding provides WTO members with a legal framework for resolving trade disputes that arise while implementing WTO agreements.
Ideally, disagreements are settled through negotiation. If this is not possible, WTO members can request the formation of a dispute-resolution panel. The panel will issue a report, which can then be appealed to the WTO's Appellate Body on legal issues.
If a WTO member fails to follow the recommendations of dispute settlement, trade compensation or sanctions, such as increases in customs duties, may be imposed.
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first mortgage bonds are senior in priority to claims of second mortgage bonds. debentures are long-term bonds that are not secured by a mortgage. subordinated debentures are bonds having
During liquidation, bonds with subordinated debentures have claims on assets only after a senior debt has been paid in full.
In the event of a liquidation, first mortgage bonds are deemed to have a superior claim on the company's assets and would be paid out first. Second mortgage bonds are regarded as junior in precedence to first mortgage bonds' claims. Debentures are long-term, unsecured bonds that lack a mortgage on particular assets.
On the other hand, subordinated debentures have claims on a company's assets only after senior debt, such as first mortgage bonds, has been fully repaid in the case of liquidation. This indicates that only when the holders of senior debt had been fully paid would holders of subordinated debentures be compensated.
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a project objective is the tangible end product that the project team must produce or deliver. group of answer choices false true
A project objective is the tangible end product that the project team must produce or deliver. - True
In an organisation, what must be completed is defined by a certain objective. The project team must generate and deliver the actual finished product. The end product or deliverable, the timetable, and the budget are all established in the project objective. Additionally, it is anticipated that the work scope would be completed in a professional way and to the client's satisfaction.
The project team is working towards a certain objective or desired result. It is a declaration of what the project's goals are, such as enhancing a business procedure, creating a new product, or putting in place a new system. It offers a precise description of what project success looks like and aids in uniting the project team and stakeholders around a single objective.
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one reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.. t/f
This statement is True.For a certain reporting period, the expected cost of manufacturing overhead is applied to cost items using an allocation rate called a predefined overhead rate.
What's the point of employing pre-determined overhead rates?Manufacturing overhead costs are distributed among jobs based on a predetermined overhead rate. The rate is defined at the beginning of the period so that jobs are costed throughout the duration rather than only at the conclusion.
What factors go into determining the pre-determined overhead rate?The precalculated manufacturing overhead cost is divided by the activity driver to yield the predefined overhead rate. As an illustration, the accountant should split overhead costs by the estimated number of machine hours when machine hours are the activity driver.
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