Ad Valorem Duty Is Based on the Price Actually Paid

question 43

True/False

Ad valorem duty is based on the price actually paid for the good when sold for export to the United States.

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Definitions:

Standard Direct Labor

The predetermined cost of labor that is directly involved in the production of goods.

Standard Rate

A predetermined cost or price that is used for calculating variances, budgeting, or setting product prices.

Variable Overhead

The portion of overhead costs that varies directly with production volume.

Variable Overhead Rate Variance

The variance between the expected variable overhead according to standard cost and the actual variable overhead costs incurred.