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What Does the Acronym FOB Stand For? Describe the Differences

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Essay

What does the acronym FOB stand for? Describe the differences between FOB shipping point (or FOB factory) and FOB destination.


Definitions:

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Applied Fixed Overhead Cost

The portion of fixed overhead costs that is allocated to the production process during a specific period.

Budgeted Fixed Overhead Cost

Budgeted fixed overhead cost is the projected amount of fixed costs that are expected to be incurred during a specific period, used for budgeting purposes.

Material Quantity Variance

The difference between the actual quantity of material used in production and the standard quantity expected to be used.

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