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Compare Hierarchical Control with Decentralised Control

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Compare hierarchical control with decentralised control.


Definitions:

Variable Overhead

Refers to the costs of production that fluctuate with the level of output, such as utilities and raw materials.

Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost.

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce a unit of a specific product.

Standard Costing

A cost accounting method that assigns predefined costs to direct materials, labor, and overhead, used to compare against actual costs for performance analysis.

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