The Production Manager Is Typically Responsible for the Direct Labor

question 34

True/False

The production manager is typically responsible for the direct labor rate variance.It is difficult to hold an individual manager responsible for the direct labor rate variance because many factors can influence the wage rate.

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Definitions:

Human Judgment

The cognitive process of making decisions or drawing conclusions based on personal knowledge, experience, senses, and emotions.

Additive Form

A mathematical or statistical model where the components or factors are combined through addition to predict or estimate outcomes.

Systematic Component

The part of a process or model that can be directly explained by variables within the system, leading to predictable outcomes.

Seasonal Factor

Variations in demand, supply, or other business indicators that occur at specific times of the year.