Intellectual Capital Refers to Tangible Assets and Resources of an Enterprise

question 44

True/False

Intellectual capital refers to tangible assets and resources of an enterprise that are captured by conventional accounting reports.

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Definitions:

Standard Labour Rate

A pre-established rate used to calculate the labor cost element of a product or service, based on expected wage rates.

Unfavourable Variance

A financial condition where actual costs are higher than planned or budgeted costs.

Overtime Labour

Overtime labor refers to the extra hours worked by employees beyond their regular working hours, often compensated at a higher pay rate.

Direct Material Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, expressed in cost or quantity.