Which Advantage Accrues When Teams,or Firms,are Formed

question 4

Multiple Choice

Which advantage accrues when teams,or firms,are formed?

• A)Positive synergies
• B)Each participant perceives an advantage to joining
• C)Increase in economies of scale
• D)Contracting efficiencies
• E)All of the choices are correct

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Definitions:

Actual Cost

The actual amount spent on goods, services, and labor to produce an item or to run a company.

Data Collected

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activities, allowing for more accurate budgeting and variance analysis.