Deviation Refers to a Departure from Prescribed Controls or Amounts

question 127

True/False

Deviation refers to a departure from prescribed controls or amounts that are not monetarily correct.

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Definitions:

Budget Variance

The difference between budgeted figures for revenue or spending and the actual amounts incurred.

Machine-Hours

A measure of production time, calculated by the number of hours machines are operating as part of the manufacturing process.

Actual Output

The actual quantity of goods or services produced by a company within a specified timeframe.

Variable Overhead Rate

The ratio of variable overhead costs to an activity base such as units produced or direct labor-hours, used for costing purposes.