A Scheduled Receipt Is an Order That Has Been Promised

question 62

True/False

A scheduled receipt is an order that has been promised to a customer but is currently not in inventory.

---

Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on efficient operations.

Variable Overhead

Costs that vary with the level of production or sales, such as utilities or hourly wages, that are not directly tied to a specific product.

Direct Labor-hours

Sum total of hours expended by workers directly active in the manufacturing domain.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.