Two Approaches to Process Improvement Include Continuous and Breakthrough

question 61

True/False

Two approaches to process improvement include continuous and breakthrough.

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Definitions:

Absorption Costing

Absorption costing is an accounting method where all of the manufacturing costs, including both fixed and variable costs, are allocated to produced units, thus encompassing direct materials, direct labor, and overheads.

Variable Costing

An accounting method that only includes variable production costs (direct labor, direct materials, and variable manufacturing overhead) in product costs, excluding fixed overhead.

Product Cost

Product cost refers to the total expenses incurred to create a product, including direct labor, materials, and allocated overhead.

Variable Costing

An accounting method that only includes variable costs (costs that change with production levels) in product costs.