If a Cost Is Related to Running the Manufacturing Facility

question 108

True/False

If a cost is related to running the manufacturing facility but does not qualify as direct materials or direct labor, it is classified as overhead.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels within a business.

Customers Served

The number of individual clients or customers that a business has provided products or services to within a specific timeframe.

Flexible Budget

A budget that dynamically adjusts in correlation with variations in volume or activity levels.

Donations

Voluntary contributions of assets, including money or goods, to a person, group, or organization without expecting any return.