Which of the Following Is Most Likely to Be Included

question 81

Multiple Choice

Which of the following is most likely to be included as part of an operating budget?

• A) Insurance
• B) New plant
• C) New building
• D) Machinery

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including costs for utilities, depreciation of machinery, and factory staff salaries.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard labor rate.

Standard Hours

The estimated time that should be taken to complete a task or produce a unit under normal conditions.

Actual Labor-Hours

Actual labor-hours represent the real number of labor hours worked by employees, as opposed to planned or estimated hours, often used in productivity and costing analyses.