Explain, in General, the Changes and the Reasons for Change

question 19

Essay

Explain, in general, the changes and the reasons for change in the DSM-5?

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Definitions:

Standard Quantity

The budgeted or pre-determined amount of material or input expected to be used during a manufacturing process.

Standard Hours Allowed

The time that should have been taken to complete the period’s output. It is computed by multiplying the actual number of units produced by the standard hours per unit.

Material Price Variances

The difference between the expected cost of materials and the actual cost incurred, useful in budgeting and cost management.

Labor Efficiency Variance

A measure used in cost accounting to gauge the difference between the actual hours taken to produce a good or service and the standard hours expected, multiplied by the standard labor rate.