In Accounting, the Word "Net" Means "Something Taken Out

question 56

True/False

In accounting, the word "net" means "something taken out."

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Definitions:

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.

Per-unit Standards

Benchmarks or norms for the cost or quantity of materials, labor, and overhead required to produce one unit of product, used for budgeting and performance evaluation.