Short-Term Cash Planning Tools Include Preparation of A: Sales Schedule

question 12

True/False

Short-term cash planning tools include preparation of a: sales schedule, a purchases schedule, a wages and commissions schedule, and a cash budget.

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Definitions:

Standard Costing System

A cost accounting system that uses cost estimates for material, labor, and overhead to calculate a standard cost for products.

Variable Manufacturing Overhead

Manufacturing costs that vary in direct proportion to changes in production volume, such as utilities and indirect materials.

Machine-hours

A measure of production output based on the number of hours machines are operated within a given period.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead assigned to the production based on the actual activity levels.