Costs and Benefits Must Be Put in Common Terms If

question 49

True/False

Costs and benefits must be put in common terms if they are to be compared.

---

Definitions:

Completed Unit

A unit of product that has completed the manufacturing process and is considered ready for sale or delivery to the customer.

Actual Rate

The real interest rate or exchange rate that is applied in current transactions, distinct from theoretical or future rates.

Standard Rate

A predetermined cost or price used in budgeting and costing exercises, reflecting an expected or agreed level of expenditure or charge.

Variable Factory Overhead Controllable Variance

The difference between the actual and budgeted variable overhead costs that management has the ability to influence or control.