Identify/define and Explain the Significance of the Following: July Ordinances

question 32

Essay

Identify/define and explain the significance of the following: July Ordinances.

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Definitions:

Variable Component

The portion of cost or expense that varies directly with changes in output or activity level.

Fixed Manufacturing Overhead

Refers to the consistent, unvarying costs associated with manufacturing that do not fluctuate with production volume, like salaries of managerial staff and depreciation of factory equipment.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salary of the factory manager and rent of the manufacturing facility.

Overhead Applied

The allocation of overhead costs to specific jobs or cost objects based on a predetermined rate.