To Improve Control of Operations, a Shop Owner Wishes to Measure

question 73

Multiple Choice

To improve control of operations, a shop owner wishes to measure performance at the process stage. The owner might

• A) inspect raw materials.
• B) use quality control.
• C) set sales quotas.
• D) improve personnel-selection methods.

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Definitions:

Direct Labor Efficiency Variance

A measure that analyses the variance between the actual hours worked and the standard hours set for producing a certain number of units.

Deadbolt Locks

A locking mechanism distinct from spring bolt lock, offering more security by requiring a key or knob to move the lock into the locked and unlocked positions.

Materials Quantity Variance

The difference between the actual and standard quantity of materials used times the standard price.

Materials Price Variance

The difference between the actual price and standard price of raw materials times the actual quantity used or purchased.