Generally,it Does Not Matter How Cost Allocations Are Designed and Explained,because

question 144

True/False

Generally,it does not matter how cost allocations are designed and explained,because most employees do not care whether the allocations appear to be fair or not.

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Definitions:

Standard Materials Cost

The budgeted or estimated cost of raw materials required for production, used for cost control and variance analysis.

Material Used

The raw materials that have been consumed in the production process to create goods.

Total Labor Cost Variance

This refers to the difference between the actual labor costs incurred and the standard labor costs for the actual production levels.

Labor Per Unit

The amount of labor cost assigned to each unit of production.