_____________ Refer to Cost Savings That Come from Learning by Doing

question 26

Multiple Choice

_____________ refer to cost savings that come from learning by doing.

• A) Learning effects
• B) Exponential effects
• C) Ancillary effects
• D) Indirect effects
• E) R&D effects

---

Definitions:

Overhead Volume Variance

The difference between the budgeted and actual volume of overhead costs.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing of products or in providing services.

Budgeted Overhead

Budgeted overhead is the estimated total cost of all overhead expenses planned for a specific period in the future.

Controllable Overhead Variance

The difference between the actual overhead costs incurred that are directly manageable by a manager and the budgeted or standard overhead costs.