Work Should Be Released into the System When

question 98

Multiple Choice

Work should be released into the system when:

• A) a customer order is received.
• B) the first step in the process is idle.
• C) a customer order is completed.
• D) the bottlenecks need work.

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Definitions:

Labor Price Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor.

Factory Labor

The workforce engaged in the manufacture of goods, particularly those who are directly involved in producing products in a factory setting.

Standard Cost Accounting System

An accounting framework that uses cost units determined in advance for materials, labor, and overhead to value inventories and cost of goods sold.

Gross Profit

The excess of net sales over the cost of goods sold.