A Process Is a Collection of Activities That Takes One

question 51

True/False

A process is a collection of activities that takes one or more kinds of input and creates an output that is of value to a customer.

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Definitions:

Variable Component

Part of a cost or expense that varies with changes in activity level, production volume, or sales.

Fixed Component

The portion of a cost that remains constant regardless of the level of activity or output.

Overhead Efficiency

A measure of how effectively a business uses its overhead costs in the production process, often improving profit margins when increased.

Overapplied

In cost accounting, it refers to a situation where the allocated overhead for a period is more than the actual overhead incurred.