If the Standard Hours Allowed for the Actual Output of the Period

question 65

True/False

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours), then the overhead budget variance will be unfavorable.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Marginal Product

Describes the additional output that is produced by using one more unit of a factor of production, holding all other factors constant.

Marginal Cost

The supplementary cost that arises when one additional unit of a product or service is produced.