When Developing the Specifications for a New AIS, Designers Begin

question 8

True/False

When developing the specifications for a new AIS, designers begin with outputs-not inputs or processing requirements.

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Definitions:

Actual Variable Manuf. Overhead

The actual amount incurred in variable overhead costs during manufacturing, contrasting with the budgeted or standard costs.

Direct Materials

Materials in their basic form that are specifically identifiable with the manufacturing of certain products or services.

Total Variance

The overall difference between the budgeted or standard cost figures and the actual figures.

Variable Overhead

A redefinition of variable manufacturing overhead; variable overhead encompasses all variable expenses involved in the operation of a business that are not directly tied to a specific product unit.