Budget Variances Are Where Your Income and Spending Differ from Your

question 40

True/False

Budget variances are where your income and spending differ from your budget.

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Definitions:

Direct Labor Cost

The total cost of employing workers who are directly involved in the manufacture of goods or the provision of services.

Direct Materials

Primary materials directly linked to the production of a good and are categorized as variable expenses.

Cost of Goods Manufactured

The total cost of manufacturing the goods that were completed during a specific accounting period, including labor, materials, and overhead.

Indirect Labor

Labor costs associated with employees who do not directly work on the production of goods or services but support the production process.