A Direct Labor Cost Variance May Be Broken Down into a Controllable

question 9

True/False

A direct labor cost variance may be broken down into a controllable variance and a volume variance.

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Definitions:

Return On Assets

An overall measure of profitability; computed by dividing net income by average total assets.

Net Income

The total earnings or profit a company generates, calculated as revenue minus expenses, taxes, and deductions.

Total Assets

The sum of all resources owned by a company that have economic value and can be converted into cash, including property, equipment, and cash itself.

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, indicating investor expectations of growth.