Variables and Constants Are ____ Within,or Local To,only the Method

question 51

Multiple Choice

Variables and constants are ____ within,or local to,only the method in which they are declared.

• A) in scope
• B) out of bounds
• C) out of scope
• D) limited

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Definitions:

Variable Costing

A costing method in which variable manufacturing costs are treated as product costs while fixed manufacturing overheads are treated as period costs.

Predetermined Overhead Rate

A calculated rate used in cost accounting to allocate overhead costs to products or services, based on estimated overhead costs and activity levels.

Direct Labour Hours

The total hours worked by employees who are directly involved in the production process of a company.

Underapplied Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred.