In Companies That Have "No Lay-Off" Policies,the Total Direct Labour

question 51

True/False

In companies that have "no lay-off" policies,the total direct labour cost for a budget period is computed by taking the total direct labour hours needed to make the budgeted output of completed units and multiplying them by the direct labour wage rate.

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Definitions:

Matching Principle

An accounting concept that expenses should be recorded in the same period as the revenues they help to generate.