Screws Used in the Manufacture of Cabinets Are an Example

question 219

True/False

Screws used in the manufacture of cabinets are an example of a variable cost.

---

Definitions:

Standards

Established benchmarks or norms for measuring quality, performance, or compliance within an industry or organization.

Variable Factory Overhead Controllable Variance

The difference between the actually incurred variable overhead and what was expected, based on the standard cost.

Factory Overhead

All indirect costs related to the manufacturing process, including maintenance, utilities, and salary of supervisory staff.

Standard

Accepted criteria or expected specifications established as a model for measuring quality, performance, or compliance.