Which of the Following Is Most Closely Related to the Reason

question 23

Multiple Choice

Which of the following is most closely related to the reason a firm might implement MRP?

• A)So they can order the right parts
• B)So they can order parts sufficient for immediate use
• C)So they can insure that parts to arrive prior to when they are needed
• D)To assure appropriate quality levels
• E)To keep process costs between the LCL and the UCL

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to control labor costs.

Direct Materials Cost Variance

The difference between the budgeted cost of materials for products and the actual cost incurred.

Direct Labor Rate Variance

The difference between the actual cost of labor per hour and the standard or expected cost, multiplied by the total labor hours worked.

Direct Labor Time Variance

The difference between the actual labor time spent on a product and the standard labor time expected, affecting product costs.