A Service Is the Capability of Services to Be Joined

question 40

True/False

A service is the capability of services to be joined together on demand to create composite services, or disassembled just as easily into their functional component.

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Definitions:

Variable Overhead

Indirect operating costs that change in proportion to the level of production or business activity.

Total Variable Overhead Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated for the output achieved.

Standard Costing System

An accounting method that applies estimated costs to product costs for the purposes of budgeting and inventory valuation.

Direct Labour-Hours

The total hours worked by employees directly involved in manufacturing a product.