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Professor Watkins comes into her classroom before class begins and moves all the desks so that they are facing the back of the classroom. She then observes to see how the students react. Professor Watkins is using:
Raw Material
Basic materials used in the production process, which are transformed into finished goods.
Property, Plant, and Equipment
Long-term assets, including land, buildings, machinery, and vehicles, used in the operation of a business.
Standard Cost Variances
The differences between the expected (standard) costs and the actual costs incurred for materials, labor, and overhead during a period.
Selling and Administrative Expenses
Overhead costs associated with the general operation of a company and the selling of goods or services, not directly tied to production.
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