Data Are Raw Facts or Observations, Typically About Physical Phenomena

question 80

True/False

Data are raw facts or observations, typically about physical phenomena or business transactions.

---

Definitions:

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the volume of production, such as factory rent and salaries of managers.

Direct Labour

The labor costs directly attributable to the production of goods or services, typically wages paid to workers who are directly involved in manufacturing.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the manufacturing cost is managed to meet that selling price.