Asked by Angel Jordan on May 19, 2024
Verified
A variable cost system is an accounting system where standards are set for each manufacturing cost element.
Variable Cost System
An accounting approach where costs that vary directly with the level of output are only recorded as product costs, contrasting with full costing methods.
Manufacturing Cost
The total expense involved in the production of goods, including materials, labor, and overhead costs.
- Acquire knowledge about the principles and implementation of standard cost systems in the field of accounting.
Verified Answer
AC
Alivia CroteauMay 21, 2024
Final Answer :
False
Explanation :
A variable cost system is an accounting system that changes with the level of output, focusing on costs that vary with production levels, rather than setting standards for each cost element.
Learning Objectives
- Acquire knowledge about the principles and implementation of standard cost systems in the field of accounting.
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