Outsouring Is the Practice of Procuring from External Sources Services

question 36

True/False

Outsouring is the practice of procuring from external sources services or products that are normally part of an organization.

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Definitions:

Standard Costs

Predetermined or estimated costs used to compare with actual costs, serving as a financial management tool for analyzing variances.

Sales Variances

The differences between actual sales and budgeted or projected sales, often analyzed to assess performance.

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level.

Direct Labor Cost Variance

The difference between the budgeted cost for direct labor and the actual cost incurred, used as a measure of performance efficiency.