When a Supplier Provides a Price Quote to a Buyer

question 111

True/False

When a supplier provides a price quote to a buyer for supplies that includes transportation to the buyer's location this is known as FOB destination pricing,or free on board to the shipment's destination.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overheads based on expected efficiency and the actual variable overheads incurred.

Month

A unit of time, approximately 1/12th of a year, based on the Gregorian calendar.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard costs.

Labor Rate Variance

The difference between the actual labor rate paid and the standard or expected labor rate, impacting the total cost of production.