"After a Long and Costly Two Weeks, I Have Lots

question 59

Multiple Choice

"After a long and costly two weeks, I have lots of data, that I don't know how to analyze. I don't know what constitutes good performance as opposed to bad performance," said Malcolm to his boss. His boss replied, "Malcolm, it sounds as if you failed to first establish a(n) ________ by which to assess your data."

• A)parameter
• B)locus
• C)measurement
• D)standard
• E)index

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Definitions:

Standard Quantity

The predetermined amount of materials or resources expected to be used in a production process or manufacturing of a product.

Standard Price

A predetermined cost that is set for materials, labor, and overhead to evaluate financial performance against actual costs.

Actual Materials Purchased

The actual quantity of materials bought by a company for production purposes over a given period.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard variable overhead for the actual production level, reflecting efficiency in controlling variable overhead costs.