Variance Analysis Is a Tool Used by Management to Pinpoint

question 113

True/False

Variance analysis is a tool used by management to pinpoint inefficiencies in the manufacturing process.

---

Definitions:

Physical Count

The process of manually counting and verifying the quantities of physical inventory in a business.

Inventory on Hand

The total quantity of goods or materials a business has in its possession, ready for sale or production.

Debit Memo

A document issued by a buyer to reduce the amount owed to a seller, typically due to returned goods or an overcharge.

Return of Merchandise

A process where customers return previously purchased products to the seller, often due to defects, dissatisfaction, or other reasons.