Firms Use Non-Financial Measures To

question 34

Multiple Choice

Firms use non-financial measures to:

• A)Identify problems with their processes.
• B)Help align goals.
• C)Provide on-going feedback to employees.
• D)Evaluate employees.
• E)All of the above.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as indirect materials and utilities for machinery.

Variable Overhead Efficiency Variance

A measure used to assess the efficiency of variable overhead resource usage, calculated as the difference between actual and expected costs based on standard usage rates.

Direct Materials Purchases Variance

The difference between the actual cost of materials purchased and the expected cost at standard prices.

Direct Labor-Hours

An alternative term for direct labor-hour, referring to the labor time spent by employees directly on manufacturing a product.