The Main Trait of a Single-Period Model Is That

question 35

Multiple Choice

The main trait of a single-period model is that

• A) inventory has limited value after a certain period of time.
• B) it has the largest EOQ sizes.
• C) the order quantity should usually equal the expected value of demand.
• D) supply is limited.
• E) inventory has substantial value after a certain period of time.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain amount of output, multiplied by the standard labor rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected overhead based on standard rates.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allotted for the actual production achieved, indicating the efficiency of utilizing variable resources.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.