fixed production overhead

The elements of an organization's factory overheads that, in total, remain unchanged irrespective of changes in the level of production or sales. Examples include factory rent, depreciation of machinery using the straight-line method, and the factory manager's salary.

Accounting dictionary. 2014.

Look at other dictionaries:

  • fixed production overhead — The elements of an organization s manufacturing overheads that, in total, remain unchanged irrespective of changes in the level of production or sales. Examples include factory rent, depreciation of machinery using the straight line method, and… …   Big dictionary of business and management

  • Отклонение постоянных производственных накладных расходов по объему (FIXED PRODUCTION OVERHEAD VOLUME VARIANCE)  — Излишне или недостаточно распределенные постоянные производственные затраты, возникающие, когда фактический объем производства находится выше или ниже планового. Разность между плановыми и фактическими постоянными производственными накладными… …   Словарь терминов по управленческому учету

  • overhead efficiency variance — overhead productivity variance; = productivity variance In a standard costing system, that part of the overhead total variance that arises from the more or less efficient use of the time available to carry out the actual production. It compares… …   Accounting dictionary

  • Fixed cost — Fixed costs are business expenses that are not dependent on the level of production or sales. They tend to be time related, such as salaries or rents being paid per month . This is in contrast to Variable costs, which are volume related (and are… …   Wikipedia

  • fixed overhead volume variance — overhead volume variance; = volume variance In a standard costing system, the difference arising between the actual production in units and the budgeted production, valued at the standard fixed overhead absorption rate per unit. It measures the… …   Accounting dictionary

  • Production Volume Variance — The amount of fixed overhead costs that are not allocated to a product because actual production varies from budgeted production. Also known as fixed overhead volume variance. Mathematically, production volume variance is expressed as: (Actual… …   Investment dictionary

  • production, theory of — ▪ economics Introduction       in economics, an effort to explain the principles by which a business firm decides how much of each commodity that it sells (its “outputs” or “products”) it will produce, and how much of each kind of labour, raw… …   Universalium

  • Overhead crane — An overhead crane, featuring runways, bridge, and hoist in a traditional industrial environment …   Wikipedia

  • fixed overhead absorption rate — The budgeted fixed overheads divided by the budgeted standard hours, budgeted production in units, or other budgeted production measure. See: absorption rate …   Accounting dictionary

  • production cost variance — In standard costing, the variance arising when the standard cost of the actual production is compared with the actual cost incurred. If the standard cost is higher than the actual cost a favourable variance arises, while if the actual cost… …   Big dictionary of business and management

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