The Cost of Napkins Put on Each Person's Tray at a Fast

question 254

True/False

The cost of napkins put on each person's tray at a fast food restaurant is a variable cost with respect to how many persons are served.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of materials, based on budgeted prices.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, often used to measure workforce productivity.

Variable Overhead Efficiency Variance

A metric that measures the difference between the actual and budgeted variable overhead costs based on the efficiency of production.

Materials Quantity Variance

The difference between the actual and the standard amount of materials used in production, valued at the standard cost.