________ Is the Difference Between the Cost of a Product

question 82

Multiple Choice

________ is the difference between the cost of a product or service and its selling price.

• A)Markup
• B)Break-even price
• C)Contribution margin
• D)Absorption costing

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Definitions:

Total Overhead Variance

The difference between actual overhead costs incurred and overhead costs allocated to production, based on standard rates, during a specific period.

Direct Labor Price Variance

A measure of the difference between the actual cost of direct labor and the standard cost of direct labor multiplied by the actual hours worked.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service, often used to allocate labor costs to products or services.

Standard Rate of Pay

The fixed amount of money paid to employees for a specific job or activity, typically expressed on an hourly or annual basis.