Examlex
Testing for a restricted exhaust system using a vacuum gauge is being discussed. Technician A says this test should be performed at idle only. Technician B says that high vacuum on the gauge during all phases of the test indicated a restricted exhaust. Who is correct?
Markup
The amount added to the cost of goods to cover overhead and profit; a percentage of cost.
Direct Labor
Labor costs directly associated with the manufacture of specific goods or the delivery of specific services, representing wage expenses for personnel involved in production.
Absorption Costing
An accounting strategy where the price of manufacturing a product is determined by adding up expenses on direct materials, direct labor, and every overhead cost, be it variable or fixed.
Markup
The extra charge applied to the acquisition cost of items intended to offset operating costs and secure a profit, which defines their market price.
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