Value Is Determined by Comparing a Product's ________________; the Formula

question 26

Short Answer

Value is determined by comparing a product's ________________; the formula requires dividing ____________.
costs and benefits; benefits by costs
price and quality; price by quality
price and durability; durability by price
quality and durability; quality by durability
availability and price; price by availability

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.

Labor Efficiency Variance

measures the difference between the actual labor hours used and the standard labor hours expected for the production achieved, indicating labor efficiency.

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.