The 80/20 Principle Is a Time Management Concept That Favours

question 44

True/False

The 80/20 principle is a time management concept that favours a salesperson putting 80 percent of his time on planning and 20 percent on selling.

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Definitions:

Goods Sold

The term refers to the total quantity of products that a company has sold to its customers during a specific period.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly associated with the product, such as maintenance, utilities, and salaries of supervisors.

Underapplied

This term refers to a situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied

Overapplied refers to a situation where the allocated overhead cost in an accounting period is greater than the actual overhead cost.