Goods on Consignment Are Goods That Are Shipped by the Owner

question 18

Short Answer

Goods on consignment are goods that are shipped by the owner, called the ________, to another party called the ________ that will sell the goods for the owner.

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Definitions:

Fixed Manufacturing Overhead

Costs related to manufacturing that do not change with the level of production, such as factory rent and salaries of supervisory personnel.

Budget Variances

The differences between budgeted amounts and actual amounts.

Machine-Hours

An allocation base in cost accounting used to assign costs to products or services, based on the hours of machine operation required.

Fixed Manufacturing Overhead

Consists of manufacturing costs that do not change with the level of production, such as salaries of supervisors and rent for factory premises.