The Inventory of A(n) ____________________ Consists of Three Categories: Raw

question 228

Short Answer

The inventory of a(n) ____________________ consists of three categories: raw materials, work-in-process, and finished goods.

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Definitions:

Budget Variance

The difference between the budgeted or planned amount of expenses or revenues, and the actual amount incurred or earned.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.

Volume Variance

The difference between planned production volumes and actual production volumes, and its effect on budgeted costs.

Variable Overhead

Costs that fluctuate with changes in production level or activity, such as utilities or materials, within the manufacturing overhead category.