Which of the Following Should Be Considered When Analyzing Manufacturing

question 83

Multiple Choice

Which of the following should be considered when analyzing manufacturing overhead variances?

• A) whether costs incurred are product costs or period costs
• B) whether direct materials costs are higher than standard costs
• C) whether certain manufacturing overhead costs are controllable
• D) whether direct labor costs can be reduced

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Wire Strippers

A hand tool used for stripping the insulation from electric wires, essential in electrical wiring tasks.

Manufacturer

An entity engaged in the business of producing goods for sale, using labor, machinery, and raw materials.

Cedar Shingles

A type of roofing material made from cedar wood, known for its durability and natural resistance to decay.