The Extent to Which a Performance Measure Is Deemed to Be

question 99

True/False

The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it is known as its acceptability.

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Definitions:

Estimated Machine-Hours

The anticipated amount of machine time required to complete a job or process.

Actual Machine-Hours

The actual number of hours that machines are run during a production period.

Variable Manufacturing Overhead

Refers to the production costs that change in proportion to the level of production activity, such as utilities or raw materials needed for manufacturing.

Machine-Hours

A measure of the amount of time a machine is operated in the production process, often used in costing and budgeting.