List the Three Types of Retail Operating Expenses

question 62

Essay

List the three types of retail operating expenses.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, valued at the standard cost.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks against actual production costs.

Gallons

A unit of volume measurement used primarily in the United States, equivalent to 3.785 liters.