A Draft Involves Only Two Parties: a Drawer and a Payee

question 57

True/False

A draft involves only two parties: a drawer and a payee.

---

Definitions:

Variable Overhead

Costs that fluctuate with production volume, such as utilities or materials used in the manufacturing process.

Overhead Efficiency

The effectiveness with which an organization manages its overhead costs in relation to its operational activities.

Direct Labor-Hours

Cumulative working hours of employees specifically involved in the production process.

Variable Overhead

Costs that vary with the level of production or business activity, such as utilities or raw materials.