A Centralized Logistics Organization Generally Results in Better Customer Responsiveness

question 73

True/False

A centralized logistics organization generally results in better customer responsiveness than a decentralized logistics organization.

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Definitions:

Volume Variance

The difference between the expected amount of output and the actual output, often indicating efficiency in production.

Total Factory Overhead Cost Variance

The difference between the actual factory overhead costs incurred and the overhead costs that were expected or budgeted for a period.

Fixed Factory Overhead

The constant, recurring costs associated with operating a manufacturing facility, excluding variable costs such as direct labor and materials.

Volume Variance

The difference between the budgeted amount and the actual amount of goods sold, often analyzed to assess performance.