Fixed Overhead

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Definitions
Absorption Costing
Absorption Costing Overhead Absorption Full Costing Absorption Rates Fixed Overhead Variable Costs Manufacturing Costs Product Costs
Absorption costing, also known as full costing, encompasses an accounting process where all manufacturing costs, both fixed and variable, are absorbed by the product. This method assigns a portion of fixed overhead costs to each unit produced, resulting in a more comprehensive understanding of product costs.
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Definitions
Capacity Usage Variance
Capacity Usage Variance Fixed Overhead Operational Efficiency Resource Utilization Budgeted Hours Manufacturing Cost Control
Capacity Usage Variance (CUV) measures the difference between the actual hours worked and the budgeted hours, specifically in relation to fixed overheads. It is an essential metric in manufacturing and production, providing insights into operational efficiency and resource utilization.
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Definitions
Overhead Efficiency Variance
Overhead Efficiency Variance Standard Costing Overhead Costs Productivity Variance Efficiency Absorption Rate Fixed Overhead Variable Overhead
Overhead Efficiency Variance is an accounting concept used in standard costing systems to measure the variance in overhead costs due to the efficiency or inefficiency of actual production time compared to the standard time allocated.
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Definitions
Overhead Total Variance
Overhead Total Variance Standard Costing Fixed Overhead Variable Overhead Overabsorbed Overhead Underabsorbed Overhead
In a system of standard costing, the overhead total variance is the difference between the standard overhead recovered for actual units produced and the actual overhead incurred for a period.
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Definitions
Overhead Volume Variance
Overhead Volume Variance Fixed Overhead Cost Accounting Budget Variance Managerial Accounting
Overhead Volume Variance is a budgetary metric used in cost accounting to measure the difference between the budgeted and actual fixed overhead allocated based on the actual volume of production.
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Definitions
Standard Fixed Overhead Cost
Standard Costing Fixed Overhead Cost Accounting Absorption Costing Fixed Overhead Rate Cost Management Time Allocations
In standard costing, a standard fixed overhead cost is derived from the standard time allowed for the performance of an operation or the production of a product and the standard fixed overhead absorption rate per unit of time for that operation or product.
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Definitions
Standard Overhead Cost
Standard Overhead Cost Standard Costing Fixed Overhead Variable Overhead Overhead Absorption Rate Production Costs Management Accounting Financial Performance
A standard cost for the fixed and/or variable overhead of an operation derived from the standard time allowed for the performance of the operation or the production of a product and the standard overhead absorption rate per unit of time for that operation or product.
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