In Indirect Cost Pools,design Costs Are ________

question 95

Multiple Choice

In indirect cost pools,design costs are ________.

• A)batch-level costs
• B)output unit-level costs
• C)product-sustaining costs
• D)direct costs
• E)facility-sustaining costs

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its expected or standard cost, which can signal efficiency issues or market fluctuations.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are a significant component of its production cost.

Unfavorable

A term often used in budgeting and financial analysis to describe results that are worse than expected or budgeted figures.

Cost Variance

The difference between actual cost and the flexible budget at actual volumes.