An Expenditure Is an Example of What the GASB Terms

question 12

True/False

An expenditure is an example of what the GASB terms an outflow of resources.

---

Definitions:

Efficiency Variance

The difference between the actual amount of an input used and the amount that was expected to be used, measured in financial terms.

Variable Overhead

Costs that fluctuate with the level of production or business activity, such as utilities or raw materials.

Rate Variance

The difference between the expected standard cost and the actual cost incurred, calculated for direct labor rate, overhead rate, or material price.

Standard Direct Labor-Hours

The estimated hours required to produce a units based on standard efficiency and productivity levels.