In Variable Costing,fixed Costs Do Not Become Part of the Cost

question 149

True/False

In variable costing,fixed costs do not become part of the cost of goods manufactured,but are considered an expense of the period.

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Definitions:

Time Study

Timing a sample of a worker’s performance and using it as a basis for setting a standard time.

Labour Standards

Benchmarks or criteria used to measure the expected performance or productivity of workers within a specific time period.

Historical Experience

Refers to the information and insights gained from past events and situations that influence current decision-making or understanding.

Time-Study Procedure

A method used to determine the time taken for a worker to complete a task, with the goal of increasing efficiency.