Management Must Make Sure That Physical Facilities

question 17

Multiple Choice

Management must make sure that physical facilities:

• A) match their competitors' facilities.
• B) are efficient and up to date.
• C) provide a pleasant work space.
• D) do not harm their public image.

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected to produce a certain level of output.

Standard Labour Rate

The predetermined or expected cost per unit of labor, used in budgeting and cost control.

Variable Overhead Efficiency Variance

The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.

Direct Labour Hours

The total hours worked by employees directly involved in producing goods or delivering services, used to allocate labor costs accurately.