If Demand Is Insufficient to Keep Everyone Busy and Workers

question 166

True/False

If demand is insufficient to keep everyone busy and workers are not laid off, a favorable (F) labor efficiency variance often will be a result.

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer assumes responsibility for the goods and their transportation costs from the point of departure.

Insurance in Transit

Insurance in transit covers risk to goods and materials while they are being transported from one location to another.

Inventory Costs

Expenses associated with storing and managing goods that a company holds for sale.

Service Charge

A fee collected by a financial institution, or any other service provider, for the services they provide.