On the Variable Costing Income Statement,the Amounts Representing the Difference

question 123

True/False

On the variable costing income statement,the amounts representing the difference between the contribution margin and income from operations is the fixed manufacturing costs and fixed selling and administrative expenses.

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Definitions:

Rate Variance

The difference between an expected or standard cost and the actual cost incurred, often used in budgeting and financial analysis to gauge performance.

Standard Wage Rate

The predetermined rate of pay for a specific job or task over a set time period.

Wage Rate

The amount of compensation paid to an employee per unit of time (e.g., hour, day, week) for their labor.

Direct Materials Quantity Variance

This measures the difference between the actual quantity of materials used in production and the standard amount expected to be used.