Fewer Overnight Trips and Regular Contact with Productive Customers Can

question 30

True/False

Fewer overnight trips and regular contact with productive customers can reduce sales expenses as well as improve a firm's sales-cost ratio.

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Definitions:

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.

Direct Labor-hours

The complete tally of hours that workers, directly involved in making products or providing services, spend working.

Actual Direct Labor Cost

The total expense of labor directly involved in the production of goods or services, as it actually occurred.