Which of the Following Is True of Flow Shop Processes

question 18

Multiple Choice

Which of the following is true of flow shop processes

• A) They produce low volumes of custom goods and services.
• B) They are large-scale, customized initiatives with wide variations in tasks.
• C) They have high setup or changeover time.
• D) They are organized around a fixed sequence of activities and process steps.

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Definitions:

Direct Materials Standards

The expected cost and quantity of materials required for the production of a unit of product.

Raw Material Price

This refers to the cost of basic materials that are used in the production of goods.

FOH Budget Variance

The difference between the budgeted factory overhead costs and the actual overhead costs incurred.

FOH Volume Variance

The difference between the budgeted fixed overhead and the applied amount based on the actual activity level.