The Matching Principle Says That Expenses Are Matched to the Revenue

question 98

True/False

The matching principle says that expenses are matched to the revenue recognized during the period,not that revenue is matched to the period's expenses.

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Definitions:

Direct Labor Costs

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and the standard cost of variable overhead allocated for the actual production.

Supplies Cost

The cost associated with materials and items used in the operation or maintenance of a business or facility.

Machine-Hours

A measure of the amount of time a machine is operated, used for allocating machine operation costs to products or units produced.