A Standard Unit Cost Can Be Determined After Developing Standard

question 114

True/False

A standard unit cost can be determined after developing standard costs for direct materials,direct labor,and variable and fixed overhead.

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Definitions:

Break-even

The point at which total revenues and total expenses are equal, resulting in no net loss or gain.

Monthly Dollar Sales

The total sales revenue earned by a business within a month, measured in dollars.

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales or production levels.

Fixed Expenses

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.