Some Variances Are the Result of Standards That Are Inaccurate

question 78

True/False

Some variances are the result of standards that are inaccurate or do not reflect the current production process.

---

Definitions:

Consume

The action of using up goods and services to satisfy personal or collective wants or needs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to do one thing over another.

Production Possibilities Schedule

A table or graph that shows the various combinations of two goods or services that an economy can produce using all its resources efficiently.