In the Context of Operations Management,which of the Following Is

question 54

Multiple Choice

In the context of operations management,which of the following is true of the transformation process?

• A)It focuses on producing outputs that are less worth than the combined costs of the inputs.
• B)It occurs in all organizations,regardless of what they produce or their objectives.
• C)It occurs only in manufacturing companies because they use tangible inputs.
• D)It involves replacing quality with productivity when manufacturing goods.
• E)It includes the same methods and number of steps in all organizations.

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Definitions:

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected (or standard) wage rate, multiplied by the total hours worked.

Variable Overhead Rate Variance

Variable overhead rate variance is the difference between the actual variable overhead costs incurred and the expected (standard) costs, influenced by fluctuations in production activity levels.

Materials Price Variance

The difference between the actual cost of materials and the standard (or expected) cost, indicating how much more or less was spent on materials than was planned.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost of labor at the standard rate.