Xerox Benchmarked Its Distribution System Against That of L

question 80

Multiple Choice

Xerox benchmarked its distribution system against that of L. L. Bean's. This is an example of:

• A) competitive benchmarking.
• B) internal benchmarking.
• C) functional benchmarking.
• D) disaggregate benchmarking.

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Definitions:

Controllable Overhead Variances

The differences between the budgeted and actual overhead costs that management can control or influence.

Volume Overhead Variances

The difference between the expected (budgeted) overhead costs based on standard volume and the actual overhead costs incurred.

Flexible Manufacturing Budget

A budget that adjusts to changes in the volume of production, providing variable costs based on different levels of activity.

Standard Cost Accounting System

A standard cost accounting system estimates the cost of production in advance, using standard costs for materials, labor, and overhead for cost control and performance evaluation.