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Engine vacuum is being discussed. Technician A says that when the engine is operating under light loads, engine vacuum is low. Technician B says that engine vacuum is high when the engine is operated under heavy loads. Who is correct?
Variable Overhead
Costs that vary with production volume, such as utilities or materials, which do not remain fixed over time.
Cost Driver
A factor that causes the cost of an activity to increase or decrease, such as machine-hours, labor hours, or production volume.
Budget Variance
The difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.
Variable Overhead
Costs of production that fluctuate with the level of output, such as utility expenses and some types of labor costs, which are not directly tied to the volume of production.
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