The Level of Activity Established to Serve as a Model

question 37

Multiple Choice

The level of activity established to serve as a model for evaluating organizational performance is known as a(n) ________.

• A)symptom
• B)problem
• C)standard
• D)correction
• E)incentive

---

Definitions:

Direct Materials Cost Variance

The difference between the budgeted cost of materials and the actual cost used in production.

Materials Cost

The expense incurred for the raw materials that are used in the production of goods or services.

Yards Per Unit

A measurement used to indicate the amount of yardage (length in yards) of material required or utilized per unit of production.

Direct Labor Variances

The differences between the budgeted or standard costs of direct labor and the actual costs incurred, which can indicate efficiencies or inefficiencies in labor usage.