According to GAAP How Should Items Be Reported in Order

question 2

Essay

According to GAAP how should items be reported in order that information is reported in a relevant manner?

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead expected for the actual production level.

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production output, such as utilities and some wages.

Materials Price Variance

The variance between the real expense of materials and their anticipated (or standard) cost.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products or job orders.