Examlex
Which of the following would NOT be considered a capability in the capabilities approach?
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's value over time.
Direct Materials Variances
The difference between the actual cost of direct materials used in production and the expected (standard) cost of those materials.
Fixed Overhead
Regular, unchanging costs incurred by a business, regardless of its level of production or sales, such as rent or salaries.
Direct Labor
The labor costs directly associated with the production of goods or services, such as wages for workers who are involved in the manufacturing process.
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