What Is Controlled Processing,and How Does Controlled Processing Act as a Check

question 201

Essay

What is controlled processing,and how does controlled processing act as a check and balance for automatic processing?

---

Definitions:

Direct Labor-Hours

The complete count of hours expended by personnel directly part of the process in making a product or providing a service.

Standard Cost System

An accounting method that uses cost estimates for labor and materials to plan a budget and measure performance.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries, and insurance associated with manufacturing.

Variances

Differences between expected and actual performance in business metrics such as costs, revenues, and production levels.