The Merit Standard Refers to

question 90

Multiple Choice

The merit standard refers to

• A) "To each according to her need."
• B) "To each exactly the same."
• C) "To each according to her productivity."
• D) "To each according to his ability."

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost of labor at the standard rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost accounting.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on the predetermined rate.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the direct costs of production.