Examlex
An external audit is a thorough assessment of an organization's various internal functional areas.
Direct Labor-Hours
The cumulative hours that employees engaged in the manufacturing process have completed.
Variable Overhead Rate
The portion of overhead costs that varies directly with production volume, calculated as variable overhead costs divided by a certain measure of activity (e.g., labor hours or machine hours).
Fixed Manufacturing Overhead
Indirect production costs that remain constant regardless of the level of production, such as salaries, rent, and insurance.
Master Budget
A comprehensive financial plan made up of several individual budgets that represent the company's operations and financial goals for a specific period.
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