Define Economics and Describe Its Branches of Study

question 405

Essay

Define economics and describe its branches of study.

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.

Standard Costing

A cost accounting method that uses standard costs—the expected costs of labor, material, and overhead—to compare against actual costs.

Variable Overhead

encompasses the costs of production that vary with the level of output, such as utilities and materials, as opposed to fixed overheads.

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process of a product.