The Ability to Customize Some Projects Is Lost When Using

question 8

True/False

The ability to customize some projects is lost when using a standardized service.

---

Definitions:

Variable Manufacturing Overhead

Overhead costs that vary with production volume, including indirect labor and utilities.

Direct Labor-Hours

The total hours of labor time directly involved in producing goods or providing services, often used as a basis for allocating manufacturing overhead.

Fixed Manufacturing Overhead

Costs related to production that do not change with the level of output, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Job-Order Costing System

An accounting system that assigns costs to specific production batches or jobs, used in environments where products are customized or not identical.