When a Manufacturing Company Uses Standard Costing Methodology in Their

question 129

True/False

When a manufacturing company uses standard costing methodology in their journal entries and accounts, an unfavorable variance has the effect of being a contra expense.

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Definitions:

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rules that must be applied rigidly.

Desensitization

A technique used to reduce or eliminate an organism's response to a stimulus by repeated exposure to that stimulus.

Implosion

A rapid inward collapse of a structure or material, often used in psychology to refer to a therapeutic technique for confronting fears.

Obsessive-Compulsive Disorder

A mental health disorder characterized by repetitive, unwanted thoughts (obsessions) and behaviors (compulsions) that drive an individual to act in certain ways.