The Initial Direct Costs of a Sales-Type Lease,borne by the Lessor,are

question 59

True/False

The initial direct costs of a sales-type lease,borne by the lessor,are to be accounted for by the lessor as part of the lease receivable.

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Definitions:

Labor Rate Variance

A measure used in accounting to calculate the difference between the actual cost of labor and the expected (or standard) cost.

Direct Labor Cost

The total expense of paying for the labor of employees directly involved in manufacturing a product or delivering a service.

Budgeted Direct Labor Cost

The estimated cost of labor directly involved in the production process, as planned in the budget.

Labor Rate Variance

The difference between the actual cost of direct labor and the estimated cost, indicating how well labor costs were controlled.