Overhead Cost Is Another Term for Variable Cost

question 142

True/False

Overhead cost is another term for variable cost.

---

Definitions:

Direct Labor-hour

A measure of the work done by labor in producing goods, calculated as the total hours of direct labor expended on the production of goods.

Predetermined Overhead Rate

A rate established in advance for allocating overhead costs to products or job orders, based on an estimated level of activity.

Direct Labor-hour

A measure of labor input based on the time workers spend on a specific task or product.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services, excluding indirect expenses such as managerial salaries.