Horizontal Analysis Will Reveal the Percentage of Net Sales Consumed

question 137

True/False

Horizontal analysis will reveal the percentage of net sales consumed by salaries expense.

---

Definitions:

Predetermined Overhead Rate

A predetermined overhead rate is calculated before a period begins and is used to apply manufacturing overhead costs to products based on a common activity base, such as machine hours or labor hours.

Direct Labour

The workforce directly involved in the manufacturing of products or the delivery of services, whose costs are directly attributable to the production process.

Direct Material

Raw materials that are directly incorporated into a finished product.

Direct Labour

Labor costs directly associated with the manufacturing of a product or provision of a service, often considered a variable cost.