Identify Sources of Variability

question 90

Essay

Identify sources of variability.

---

Definitions:

Traditional Costing System

A costing method used in manufacturing, which assigns indirect costs to products based on a predetermined overhead rate.

Company Profits

The financial gains made by a company after all expenses, taxes, and costs have been subtracted from total revenue.

Overhead Costs

Expenses associated with running a business that cannot be directly tied to a specific product or service, such as rent, utilities, and management salaries.

Cost Driver

A factor that causes the cost of an activity or a process to change.