If a Variance Analysis Shows That Operations Are Better Than

question 85

Multiple Choice

If a variance analysis shows that operations are better than expected, managers should:

• A) Do nothing
• B) Revise standard costs to make them harder to achieve
• C) Distribute extra dividends to shareholders
• D) Monitor quality to ensure it was maintained

---

Definitions:

Process-oriented Layouts

Facility layouts designed around the sequential order of operations for specific products or product families, often seen in manufacturing settings.

Labour Assignment

The process of allocating human resources to different jobs or tasks within an organization to ensure efficient operation.

Process Layouts

An arrangement of resources in a production facility where similar activities or functions are grouped together, based on the type of process they are involved in.

Relative Positioning

The strategic process of establishing a brand or product's identity by comparing it to and differentiating it from competitors in the marketplace.