The Loss of Inventory That Occurs Because of Theft,damage,and Errors

question 222

True/False

The loss of inventory that occurs because of theft,damage,and errors is referred to as inventory shrinkage.

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Definitions:

Labor Rate Variance

The discrepancy between what labor actually costs and what was originally forecasted or considered standard.

Variable Manufacturing

Costs that change in direct proportion to changes in the volume of production output.

Labor Rate Variance

A measure used in managerial accounting to assess the difference between the actual wage rates paid to workers and the expected standard wage rates for a period.

Standard Direct Labor

The expected amount of labor time and cost necessary to produce one unit of product under normal conditions.