machine hour rate
proportion of overhead costs an overhead absorption rate based on the number of hours a machine is used in production
Sometimes referred to as MRS, the marginal rate of substitution measures the rate at which an individual must give up one asset to obtain a single additional unit of a second asset, while keeping overall utility constant. MRS can measure physical goods, but also assets such as labor or time
Cost allocation in firms can provide misleading information about the profitability of products, product lines, customers, and markets. Traditional cost allocation practices allocate all manufacturing overhead costs using a single driver such as direct labor hours, direct labor dollars, or machine
By Priscilla Wisner
Half of the bank’s staff lost their jobs, and those who remained quickly became demoralized. The newly installed bank machines did not function properly. Friday afternoon payday waits grew to two hours from the already unacceptable 15–30 minutes.
By Thomas McKaig
The projected profitability of an investment, based on anticipated cash flows and discounted at a stated rate of interest.
Definitions of ’machine hour rate’ and meaning of ’machine hour rate’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’machine hour rate’ and other financial terms with our online QFINANCE Financial Dictionary.