The Additional Cost Incurred as a Result of Undertaking an Action

question 55

Multiple Choice

The additional cost incurred as a result of undertaking an action is:

• A)​the opportunity benefit.
• B)​the marginal benefit.
• C)​the total cost.
• D)​the marginal cost.

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Definitions:

Variable Overhead Rate Variance

A measure used in managerial accounting to compare the actual variable overhead incurred to the expected overhead cost based on the standard cost system.

Indirect Labor

Labor costs related to tasks that support the production environment but are not directly involved in creating the final product.

Variable Overhead Efficiency Variance

A measure used in managerial accounting to assess the efficiency of variable overhead costs incurred relative to the expected amount of those costs.

January

In the Gregorian calendar, the year begins with January, recognized as the first month.