The Balanced Scorecard Is a Performance Evaluation System That Requires

question 124

True/False

The balanced scorecard is a performance evaluation system that requires management to consider financial performance measures of performance, but not nonfinancial measures.

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Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that vary directly with the level of production, such as utilities and materials.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product cost calculation, excluding fixed overhead.

Unit Product Cost

The total cost associated with producing one unit of a product, including materials, labor, and overhead.

Direct Labor Cost

The total cost incurred by a company for the wages of workers who are directly involved in the manufacturing or production process.