A Gap Analysis Identifies Any Differences Between the Demand by Customers

question 4

True/False

A gap analysis identifies any differences between the demand by customers and the supply provided by firms currently in the market.

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Definitions:

Budgeted Sales

Forecasted sales figures used for planning purposes, reflecting the expected amount of revenue a company aims to generate in a specific period.

Direct Labour-Hours

The total hours worked directly on the production of goods, used to allocate labor costs accurately to products.

Variable Manufacturing

Costs that vary directly with the level of production output, such as materials and direct labor costs.

Fixed Manufacturing

Costs associated with the manufacturing process that do not vary with production volume, such as rent, depreciation, and salaries of permanent staff.