Standardization Refers to the Existence of Rules and Standard Operating

question 64

True/False

Standardization refers to the existence of rules and standard operating procedures.

---

Definitions:

Normal Capacity

The average production or performance level achievable under normal conditions by a business over a specific period.

Fixed Factory Overhead Volume Variance

A measure in management accounting that analyzes the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Factory Overhead Rate

A predetermined rate used to allocate manufacturing overhead to individual units of production, based on a standard cost system.

Machine Hour

A unit of measure indicating the operating time of a machine, typically used in costing and operational efficiency calculations.