Why Is the Term Value Delivery Network a More Relevant

question 78

Essay

Why is the term value delivery network a more relevant expression to use than the term supply chain or demand chain ?

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Definitions:

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and maintenance expenses.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost of direct materials, based on standard cost.

Standard Direct Labor-Hours

The predetermined amount of labor time estimated or expected to produce a unit of output, used for budgeting and measuring efficiency.