If Variable Costs Go Up,and All Other Factors Remain the Same,the

question 14

True/False

If variable costs go up,and all other factors remain the same,the margin of safety will become smaller.

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Definitions:

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, enabling the calculation of the cost per job.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a specific activity base.

Machine-Hours

A measure of the amount of time a machine is used during the production process, often used in costing and budgeting.

Direct Labor-Hours

The number of hours spent by workers directly involved in the manufacturing of a product or delivery of a service.