In Traditional and JIT Environments Using Direct Tracing, the Manufacturing

question 98

Short Answer

In traditional and JIT environments using direct tracing, the manufacturing costs assigned to products are the direct materials costs and the __________ costs.

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Definitions:

Total Labor Variance

The difference between the actual labor costs and the standard or budgeted labor costs for a production process.

U-bolts

Metal fasteners in the shape of the letter U, used to secure pipes or other round objects to surfaces.

Standard Costs

Costs that are predetermined on a per-unit basis. Standard costs are used as a benchmark for evaluating performance. These costs are often used in or are the output from the budgeting process.

Efficiency Losses

Reductions in economic well-being, reflected by the inability of a market to allocate resources optimally.