What Are Physical Units

question 52

Multiple Choice

What are physical units?

• A)the actual units to be accounted for during a period
• B)the pro-rata portion of units completed during the period
• C)units in process at the end of the period
• D)the total units completed and transferred out during the period

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual level of activity.

Unfavorable

A term used in budgeting and variance analysis to describe a situation where actual costs are higher than expected or budgeted costs.

Favorable

A term used in accounting and finance to describe a situation or variance that results in a better-than-expected financial outcome.

Standard Cost System

A method of cost accounting in which predetermined costs are used for valuing inventory and recording operations, facilitating variance analysis.