In Which Type of Operation Are You Likely to See

question 27

Multiple Choice

In which type of operation are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

• A)a project
• B)a job shop
• C)repetitive production
• D)batch processing
• E)intermittent production

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Definitions:

Mix Variance

Captures the effect of substitution among the products, holding constant the number of units sold.

Direct Labor

The cost associated with employees who are directly involved in the production of goods or services.

Direct Labor Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected for the production achieved.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost of those materials.