Differential Revenues and Costs Are Also Called Incremental Revenues and Costs

question 17

True/False

Differential revenues and costs are also called incremental revenues and costs.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on the standard labor rate.

Labor Rate Variance

The difference between the actual hourly wage rate paid to workers and the expected or standard rate, affecting production costs.

Labor Rate Variance

The variance between the real hourly wage workers receive and the anticipated or usual wage rate, when multiplied by the total hours of work.

Labor Efficiency Variance

The variance between the real hours spent working and the anticipated standard hours, times the normal wage rate.