Three Contingency Factors That Affect Planning Are Level in the Organization

question 82

Multiple Choice

Three contingency factors that affect planning are level in the organization, degree of environmental uncertainty, and___________ .

• A) length of future commitments
• B) quantity of future commitments
• C) enforceability of future commitments
• D) frequency of future commitments

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Definitions:

Labor Efficiency Variance

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

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.

Favorable

A term used to describe outcomes or variances that are positive or beneficial to a business, such as lower costs or higher revenues than expected.

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.