Innovation Is Nurtured Where There Are Slack Resources

question 65

True/False

Innovation is nurtured where there are slack resources.

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Definitions:

Total Variable Overhead Variance

Total variable overhead variance is the difference between the actual variable overhead costs incurred and the expected costs based on a standard cost model, indicating inefficiencies in production.

Variable Manuf. Overhead

Costs that vary with the level of production output and are related to the manufacturing process but cannot be directly traced to individual units produced.

Direct Materials

Raw materials that are directly incorporated into a finished product and are easily traceable to it.

Labour Rate Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production level.