To-Be Process Models Show the Results of Applying Change Improvement

question 64

True/False

To-Be process models show the results of applying change improvement opportunities to the current (As-Is) process model.

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Definitions:

Variable Manufacturing Overhead

Costs that vary with production volume, such as utilities and materials used in the production process.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (standard) overhead based on the efficient use of resources.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs at the standard variable overhead rate.

Standard Variable Overhead Rate

A predetermined rate used in costing to allocate variable manufacturing overhead to individual units of production based on a standard amount of an allocation base, such as direct labor hours or machine hours.