Flow Diagrams Are Used to Analyze

question 106

Multiple Choice

Flow diagrams are used to analyze

• A) movement of people and materials
• B) utilization of an operator and machine
• C) body movements
• D) time taken by various activities
• E) unnecessary micro-motions

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, reflecting efficiency in material use.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate.

Materials Price Variance

The difference between the actual cost of materials and the expected cost multiplied by the quantity of materials used.

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.